Honua Kai Condo Purchase Process

With an increasing interest by potential buyers in what has become one of the hottest micro-markets in Hawaii, Honua Kai condos for sale are being absorbed at a rapid pace. And the Honua Kai developer inventory still presenting attractive incentives, understanding the purchase process of developer units will benefit any interested parties. As such, let us explain in further detail:

Offer

The first step in presenting an offer is to submit a Letter of Intent (LOI), which details sales price, breakdown of funds, closing timeline, contact information, and any other relevant special terms. If the seller accepts the terms/conditions on the LOI, the buyer is then afforded the opportunity to review the public reports and the sales contract.

Acceptance

If after reviewing public reports, sales contract/applicable addenda, and the buyer is interested in proceeding forth with the purchase, then a sales contract is executed. The sales contract details all contractual obligations and commitments by both parties, superceding any previous agreements. 

Contingencies

As escrow is open and the buyer makes the initial earnest money deposit, a number of contingencies will then have to be met/satisfied in order for the purchase process to proceed forward. Namely, the most significant contingencies include (but are not all inclusive) the property inspection, procuring financing (if applicable), preliminary title report and reviewing all available condo documents (i.e. Meeting Minutes, Reserves Study). The developer must ensure that the unit is available for inspections during the agreed-upon inspection period in order for buyer and his representative to perfom said inspections and due diligence. There are only a handful of lenders who finance purchases of Honua Kai condominiums, please read a brief outline of current qualifying criteria and contact us for information on lenders.

Closing

Execution of closing documents for Honua Kai condominiums will either take place at the offices of Title Guaranty or a previously arranged location. Mortgage and conveyance documents need to be notarized, as such if not able to physically be on island, then a reasonable alternative must be planned well in advance. For Canadian buyers, please keep in mind that notarization must be done at the U.S. Consulate and it is not uncommon for these services to be by appointment only - oftentimes with first availability being weeks away. The escrow officer will provide a specific timeline by which contingencies must be met and by which funds must be received (wire transfer or certified funds only) in order to record/close as scheduled. Furthermore, we assist our clients in setting up all relevant utility accounts for a seamless transition of ownership. Upon closing, we are happy to walk our clients through the property, show them pertinent information on Honua Kai, details on how to operate certain functions within the unit, and answer any questions regarding ownership at one of our favoriter properties on Maui: Honua Kai Resort and (now) Spa.

For buyers interested in purchasing a developer unit, we respectfully request your consideration of our services as your representative - keep in mind that our services to buyers are free of any costs, we are very knowledgeable of the Honua Kai micro-market (and how it's affected by the surrounding Kaanapali market) and we are strong advocates of YOUR interests only. Let our expertise and passion for Honua Kai be your advantage - contact us today.

*Disclaimer: The above is very general outline of the purchase process for Honua Kai developer condos, but it is not indicative/reflective of the purchase process in every instance. It does not constitute legal, tax, or financial counsel. It is provided for informational/illustrative purposes for individuals interested in purchasing or selling a Honua Kai luxury unit*