You found the right home in Kailua and your offer was accepted. Now what? Escrow in Hawaii has its own pace, deadlines, and documents, which can feel unfamiliar if you are buying from the mainland or for the first time. You want a clear path, fewer surprises, and a confident closing.
In this guide, you’ll see a practical 30–45 day timeline, the key contingencies that protect you, and Kailua-specific checks that smart buyers make. You will also get a simple checklist you can follow from acceptance through recording. Let’s dive in.
Hawaii escrow basics
Escrow is the neutral process that moves your sale from accepted offer to recorded deed. Your team includes you and your agent, the seller and their agent, your lender if you are financing, and an escrow or title company that handles funds and documents. In Hawaii, the deed records at the State of Hawaii Bureau of Conveyances or, if the land is registered, in the Land Court.
Most financed sales in Kailua close in about 30–45 days. All-cash deals can be faster if both parties agree. Timelines vary by contract, lender, title company, and county or state processing.
Kailua timeline: 30–45 days
Below is a conservative roadmap. Always follow the exact deadlines in your purchase contract.
Day 0: Offer accepted
- Deliver your earnest money to escrow by the contract deadline.
- Escrow opens the file and requests identification, payee info, and instructions.
Days 1–3: Open escrow and orders
- Seller provides disclosures and, if a condo, starts the condo document request.
- Your agent books a general home inspection and termite or wood-destroying organism inspection. Schedule immediately due to island availability.
- If you are financing, submit your loan application and initial documents right away.
- Title begins the preliminary search and orders a title commitment.
Days 3–10: Inspections and J‑1
- You complete inspections within the inspection contingency period. This is commonly a short window such as 7–15 calendar days in practice. Check your contract for the exact period.
- During the J‑1 inspection contingency, you can request repairs, negotiate credits, or cancel based on the contract terms.
- If a condo, you receive association documents and financials. Your condo review period is defined in the contract, often in the 7–14 day range.
Days 7–21: Appraisal and due diligence
- Your lender orders the appraisal. Allow about 7–10 business days for scheduling and the report, depending on market conditions.
- You respond to underwriting requests like pay stubs, bank statements, and insurance information.
- Title completes deeper review and issues the title commitment with any exceptions or required clearances.
- If the property is leasehold, you review lease terms and confirm lender acceptability.
- For condos, your lender may request an updated condo questionnaire or related information.
Days 14–28: Underwriting to CTC
- Underwriting reviews your file and issues conditions. You and your agent respond promptly.
- When conditions are satisfied, your lender issues a clear to close. Loan documents are prepared for signing.
- You schedule your signing appointment. If you are out of state, ask early about remote signing or a mobile notary.
Days 21–35: Walkthrough, signing, funding
- You complete your final walkthrough, usually within 24–48 hours before closing.
- You sign loan and closing documents as instructed by your lender and title company.
- Your lender wires funds, escrow prepares the recording package, and the seller signs their deed and any required releases.
Day 30–45: Recording and keys
- The deed records at the State Bureau of Conveyances or Land Court after funds are received. Recording is typically processed within a few business days based on office workload.
- You receive keys and possession per the contract, often at funding or recording.
- Post-closing, you get your title insurance policy and final settlement statements.
Key contingencies to track
J‑1 inspection
- Scope often includes structure, plumbing, electrical, roof, and pests. The exact clause and period depend on your contract.
- Act fast. Book inspectors immediately and deliver any inspection notices within your deadline.
Termite and WDO inspection
- This is very common in Hawaii. Lenders and buyers frequently require a termite clearance or an agreement for repairs.
Title and title insurance
- Title research confirms ownership, liens, easements, and encumbrances. You receive a title commitment with exceptions and requirements.
- Hawaii can involve the Bureau of Conveyances or Land Court. Confirm which system applies to your parcel.
- If the property is leasehold, review lease expiration, ground rent, escalation terms, restrictions, and any consents.
Condo and HOA review
- Expect to review CC&Rs, budgets, meeting minutes, and insurance information within a contract-defined period.
- Lenders often require updated condominium questionnaires or estoppel letters.
Appraisal and loan approval
- The appraised value must meet or exceed your purchase price for lender approval. If there is a gap, you may negotiate or adjust your down payment.
- Unique or coastal properties, such as homes in Lanikai, can be challenging to appraise due to limited comparable sales. Appraisers may look to nearby areas for recent comps.
Surveys and boundaries
- Many Kailua homes are older and may not have recent surveys. If boundaries are a concern, order early.
- For beachfront properties, verify shoreline setbacks and whether shoreline certifications exist.
Kailua coastal checks to prioritize
Shoreline and SMA considerations
- Shoreline setbacks, erosion risk, and proximity to the high-water mark can affect permits and rebuild options.
- Properties in Special Management Areas may need additional approvals for substantial improvements.
Sewer and cesspools
- Confirm whether the home is on municipal sewer or uses a cesspool or septic. Ask for documentation and check with City and County of Honolulu and the Department of Health regarding any required upgrades.
- If a cesspool is present, arrange a septic inspection and request estimates for potential future upgrades.
Permits and compliance
- Review county permitting records for additions, lanais, or structural changes. Unpermitted work can impact financing and resale.
- For coastal homes, review any SMA permit history.
Insurance planning
- Obtain homeowner insurance quotes early. Insurers may consider roof age and condition and can require a roof certification.
- Review flood zone status and any lender-required flood insurance.
Mainland buyer tips
Remote signing steps
- Many title companies and lenders support remote signings or mobile notaries. Verify early and allow extra time for notarization and shipping.
Appraisal for unique homes
- Expect more scrutiny for coastal or one-of-a-kind properties. Give your lender prompt access and be prepared for appraisers to use nearby comps if local sales are limited.
Plan for lender differences
- Government-backed and jumbo loans can require longer underwriting. Respond quickly to conditions to keep your file moving.
Buyer prep checklist
Use this quick-reference list to stay ahead of deadlines.
Immediate: within 24–72 hours
- Deliver earnest money to escrow per your contract.
- Submit your loan application and initial documents to your lender.
- Book a general home inspection and termite inspection at the earliest available date.
- Order a survey if boundaries or setbacks are a concern.
- If a condo, request association documents and an estoppel letter as applicable.
Within the first week
- Request homeowner insurance quotes and note any roof, windstorm, or flood requirements.
- Ask title if any liens or issues must be cleared before closing.
- For leasehold, obtain the ground lease and review any transfer rules or consents.
During underwriting, weeks 2–4
- Respond to lender conditions quickly. Keep your financial documentation current.
- Review the appraisal when it arrives. If needed, discuss comps or negotiation options with your agent.
- Schedule your final walkthrough for 24–48 hours before closing.
Before signing and funding
- Call the title company to confirm wiring instructions directly. This helps you avoid wire fraud.
- Review your closing disclosure and settlement statement for fees, credits, and prorations.
- Arrange your signing. Remote or mobile signings need extra lead time.
After closing
- Verify the recorded deed and your title insurance policy issuance.
- Transfer utilities and update your mailing address and property tax billing.
- Complete any HOA transfer steps.
Who does what
- Buyer: order inspections, apply for your loan, review documents, meet contingency deadlines, and bring funds to close.
- Seller: deliver disclosures, provide access, supply condo or lease documents, and resolve any title issues that must be cleared.
- Buyer’s agent: coordinate inspections, track deadlines, advise on negotiations, and communicate with lender and title.
- Escrow and title: open escrow, hold your deposit, run title, coordinate documents and funds, and prepare recording.
- Lender: process your loan, order the appraisal, underwrite, and fund.
- Condo or HOA manager: provide association documents, budgets, and certifications as needed.
What can change timing
- Loan type and lender processes can add time, especially for government-backed or jumbo loans.
- Appraisal scheduling depends on appraiser availability and property complexity.
- Seller document delivery, such as condo packets or estoppels, can create delays.
- County or state items, like clearing liens or resolving permit issues, can extend the timeline.
- All-cash purchases can close faster if both sides agree and documents are ready.
Your next steps
If Kailua is calling and you want a smooth closing, start strong. Book inspections immediately, respond quickly to your lender, and lean on local expertise for coastal, condo, and title nuances. A clear plan keeps your escrow on track from acceptance to recording.
For concierge guidance through Kailua’s escrow process, connect with Richard DeGutis. We combine local insight, construction-savvy diligence, and high-touch service to help you close with confidence.
FAQs
How long is the Hawaii inspection period for buyers?
- The contract sets your inspection window, which is commonly a short calendar period such as about 7–15 days in practice, so schedule inspections right away.
How long does recording take in Hawaii closings?
- Recording goes through the State Bureau of Conveyances or Land Court and typically completes within a few business days, depending on office workload and funding timing.
What happens if the appraisal is below the price?
- You can consider paying the difference, renegotiating price or credits, or asking the seller to adjust, depending on your contract and lender requirements.
Are cesspools an issue in Kailua?
- Some older properties may use cesspools; confirm sewer status and any required upgrades with city and state authorities and include appropriate inspections.
Can mainland buyers sign closing documents remotely?
- Many title companies and lenders allow remote or mobile notarized signings, but you should verify early and allow extra time for processing.
