Escrow Timeline

Escrow in Hawaii

Once both parties accept an offer to purchase a property, an escrow account is opened. This account is a secure, neutral third party that holds and disburses funds throughout the transaction, ensuring a smooth transfer of home ownership.

During this time, the home buyer has the opportunity to do their due diligence and ensure the home satisfies their expectations. This is done through home inspections and reviewing all relevant documentation including the Seller’s Real Property Disclosure Statement, Title Report, Building Permits, Condominium Documents and more. In Hawaii, we call this the "Home Inspection Period," also known as the "J-1 Inspection Period."

If the Buyer is satisfied with the property’s condition, the appraisal will be ordered kickstarting the loan processing. The time it takes to process the loan and wait for the appraisal accounts for the lion's share of the time funds are held during Escrow.

Once both the Seller and the Buyer uphold the obligations written in the purchase contract, the Bureau of Conveyance records the deed and Escrow releases the funds.