The escrow process in Hawaii differs from many mainland states, and understanding how it works is essential for a smooth real estate transaction on Oahu. Hawaii uses an escrow company rather than attorneys to handle the closing process, which creates a neutral third-party system for managing funds and documents.

Once your offer is accepted, the escrow company opens a file and begins coordinating all aspects of the transaction. They hold the earnest money deposit, order title searches, coordinate with lenders, and prepare closing documents. The typical escrow period on Oahu ranges from 30 to 45 days depending on financing and inspection timelines.

Title insurance is a critical component of the escrow process in Hawaii. The title search reveals any liens, encumbrances, or ownership disputes that could affect your property rights. Hawaii's complex land history, including former kingdom land grants and Hawaiian Homes Commission lands, makes thorough title research especially important.

Closing costs in Hawaii typically range from 2 to 5 percent of the purchase price for buyers. These include escrow fees, title insurance, lender fees, prorated property taxes, and recording fees. Your escrow officer will provide a detailed estimate early in the process so you can plan accordingly.

Hawaii follows a dual agency disclosure requirement, and all parties must sign specific state-mandated forms during escrow. Your agent will guide you through each document and ensure you understand your rights and obligations throughout the transaction.

Kristy and Austin Home Group works closely with trusted escrow companies across Oahu to ensure every transaction proceeds smoothly. We guide our clients through each step of the escrow process and help resolve any issues that arise before closing day.