Understanding Warranty Deeds in Hawaii: A Complete Guide
The process of buying and selling property involves a plethora of legal terms that can be quite confusing, especially if you’re new to the real estate market. One such term is “warranty deed.” In this blog post, we will take a closer look at what a warranty deed is, specifically in the context of Hawaii’s real estate laws.
What is a Warranty Deed?
A warranty deed is a type of deed where the grantor (seller) guarantees that they hold clear title to a piece of real estate and have the right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property’s origins.
Warranty deeds are the most comprehensive type of deed, and they offer the highest level of protection to the buyer because they include significant covenants or warranties binding upon the grantor.
Warranty Deeds in Hawaii
In Hawaii, like in many states, a warranty deed is a commonly used type of deed to transfer property with warranty covenants. This means the seller is guaranteeing that they own the property, that the property is free from all encumbrances (like liens or leases), and that they will defend the title against claims made by other parties.
You can find a sample of a Hawaii Warranty Deed in this link.
How to Get a Warranty Deed in Hawaii
- Draft the Deed: The warranty deed needs to be in writing, and it must contain specific information, such as the names of the grantor and grantee, the legal description of the property, the statement of consideration, and the guarantee clauses. In Hawaii, a standard form can be used and adapted to your specific transaction. It’s recommended to work with a real estate attorney or professional to ensure the deed is correctly drafted.
- Sign and Acknowledge the Deed: The grantor must sign the warranty deed in front of a notary public. The notary will then acknowledge the document—a step required for the deed to be legally operative.
- Deliver the Deed: The grantor must deliver the deed to the grantee. The transfer of property is not effective unless the deed is delivered and accepted.
- Record the Deed: In Hawaii, warranty deeds should be recorded at the Bureau of Conveyances to provide public notice of the transfer and to protect the grantee’s interest. Note that Hawaii operates under a “race-notice” statute, meaning the first deed to be recorded will hold priority, as long as the grantee took it without notice of any earlier unrecorded deed.
Conclusion
The purchase of a property is a significant investment, and understanding the documents and procedures involved, like the warranty deed, is crucial. A warranty deed offers buyers the peace of mind that they are obtaining a clean and clear title to their new property.
Remember, while this guide provides an overview, it’s always wise to consult with a real estate professional or legal counsel when dealing with real estate transactions. They can provide guidance tailored to your specific situation and ensure that all documents, including the warranty deed, are correctly prepared and recorded.
Celester Thomas
