Buying or selling in Kailua should feel exciting, not overwhelming. If you are new to Hawaiʻi closings or moving here on PCS orders, the steps, forms, and deadlines can feel different from what you know on the mainland. In this guide, you will learn how escrow works on Oʻahu, what timelines to expect, which contingencies matter most, and how to keep your closing on track. Let’s dive in.

What escrow means in Kailua

Escrow is the neutral hub that holds your funds and coordinates the closing. Once your offer is accepted, the escrow company named in the contract opens a file, holds your earnest money, and manages documents and payoffs until recording.

In Hawaiʻi, the Hawaii Association of REALTORS (HAR) purchase contract is commonly used. You will see standard steps similar to other U.S. markets, with some Hawaiʻi‑specific items like conveyance tax customs and occasional leasehold terms.

Kailua closing timeline

Most financed transactions in Kailua close in about 30 to 45 days. Cash purchases can close faster, often in 7 to 14 days, depending on title clearance. VA and FHA loans may need extra time for appraisal and underwriting.

Offer accepted

• The HAR Offer to Purchase and Contract is executed.
• You deliver your earnest money deposit per the contract timing.
• Escrow is opened and you receive initial instructions.

First 7 days

• Escrow collects IDs and wiring instructions and orders title work.
• If a condo or HOA is involved, document requests go out early.
• Your lender receives the contract and begins the loan file.

Inspection window

• Typical inspection periods on Oʻahu run about 7 to 14 days, but timing is negotiable.
• You order a general home inspection and a termite or wood‑destroying insect inspection.
• If issues arise, you can request repairs or credits, or cancel per the contingency.

Financing and appraisal

• Underwriting progresses and the lender orders the appraisal.
• Appraisal and financing contingencies are usually set in the 30 to 45 day range.
• VA loans include a VA appraisal process and can take longer to complete.

Title and closing prep

• Title reviews exceptions and clears any liens or encumbrances.
• You secure homeowner’s insurance; most lenders require a binder before funding.
• Final figures are prepared and the Closing Disclosure is issued for review.
• You schedule a final walk‑through, often 24 to 48 hours before closing.

Signing, funding, recording

• You sign closing documents, some in front of a notary.
• Funds are wired to escrow. Always verify wire details by phone with the escrow company.
• After lender funding, escrow records the deed and mortgage. Keys are released per the contract, often at recording.

After closing

• The county records your mortgage. Title issues the owner’s policy if purchased.
• Taxes, HOA dues, and utilities are prorated between buyer and seller.

Key contingencies to expect

Contingencies protect you while you verify the home, loan, and title. In Kailua, the most common are:

• Inspection, including termite/WDI
• Financing and appraisal
• Title review
• Condo/HOA documents for attached homes
• Leasehold ground‑lease review if the property is leasehold

HAR forms often use strict dates and “time is of the essence” language. Read each addendum carefully and track every deadline.

Earnest money and escrow funds

Your earnest money deposit shows the seller you are committed. Amounts vary by price point and market conditions in Oʻahu. The HAR contract sets delivery timing and how escrow holds the funds.

If you cancel within a valid contingency, the deposit is typically returned as directed by the contract. If you default outside contingency rights, the seller may be entitled to the deposit per the contract.

Closing costs in Hawaii

Closing costs are shared by both sides, but customs in Hawaiʻi differ from other states. Your exact split depends on the contract.

• Common seller costs: broker commissions, conveyance tax, mortgage payoffs, prorated taxes and dues, and title clearing items. An owner’s title policy is negotiable.
• Common buyer costs: loan origination and lender fees, appraisal, lender’s title policy, a share of escrow or recording fees, and prepaid insurance and interest. HOA document fees may apply for condos.

Total buyer costs often fall in the low single‑digit percentage of the price, excluding down payment. Always review your lender and escrow estimates to model your true numbers.

Leasehold vs fee simple in Kailua

Most Kailua single‑family homes are fee simple, but leasehold properties do exist on Oʻahu. With leasehold, you buy the right to use the land for a set term rather than the land itself. That means you must review the ground lease for remaining term, rent increases, and requirements for lender approval or landlord consent.

If you use financing, your lender will look closely at the lease terms. Build in extra time for document review and approvals.

Flood zones and insurance checks

Parts of Kailua sit near the coast or in lower‑lying areas. Lender requirements for flood insurance depend on the home’s FEMA flood zone. Confirm the property’s flood status early, and talk with your insurance provider about wind or hurricane coverage options, which can differ in Hawaiʻi.

VA and PCS guidance for Kailua

Military families moving to Windward Oʻahu often need tight timelines and clear next steps. VA loans require a Certificate of Eligibility and a VA appraisal, and there are rules around what sellers can contribute. Plan for a 30 to 60 day window for VA loans to allow for appraisal scheduling and underwriting.

If your PCS dates create pressure, consider options like flexible closing dates or a post‑closing rent‑back when the seller needs more time to move. Start early with a lender experienced in VA loans and keep your agent, escrow, and lender aligned on milestone dates.

Prevent wire fraud

Wire instructions are a prime target for scammers, especially in relocations. Before you send any funds, confirm wiring instructions by calling the escrow company using a known, trusted phone number. Never rely solely on email to verify wire details.

What to prepare: checklists

Use these quick lists to keep your closing on track.

Buyers

• Government photo ID and updated contact info
• Proof of funds for your deposit and closing
• Loan preapproval and any requested documents
• Insurance agent contact and policy binder timeline
• Specific questions for HOA or condo documents, if applicable

Sellers

• Mortgage payoff details and any existing title policy
• Recent HOA dues ledger and association contact
• Completed seller property disclosures and repair records
• Keys, codes, remotes, and utility account information

For everyone

• Notary and signing appointments scheduled early
• Agreement on prorations for taxes, HOA dues, and utilities
• Clear plan for keys and possession timing at recording

How to keep closing on track

• Lock in your inspection dates on day one of escrow.
• Respond quickly to lender and escrow requests to avoid underwriting delays.
• Read every HAR addendum for hard dates and next steps.
• If the appraisal comes in low, decide early whether to renegotiate, bring cash, or cancel if your contingency allows.
• For condos, request documents immediately. Some associations take time to deliver records.

Ready to move in Kailua?

Whether you are buying your first home, relocating with the military, or selling a Windward property, a clear escrow plan makes all the difference. You deserve disciplined guidance, local insight, and smooth coordination from offer to keys. If you want a veteran‑led, end‑to‑end partner for Kailua closings, reach out to Chip Lewis to get started.

FAQs

How long does a Kailua closing usually take?

• Most financed deals close in 30 to 45 days; cash purchases can close in about 7 to 14 days, while VA and FHA loans may need additional time.

What contingencies are typical in Kailua contracts?

• Common contingencies include inspection and termite, financing, appraisal, title review, and HOA or condo document review, with leasehold review when applicable.

Who pays Hawaiʻi conveyance tax at closing?

• Conveyance tax is assessed on most property transfers and is commonly paid by the seller in Hawaiʻi, but always confirm in your contract.

What happens if the appraisal is below the price?

• You can renegotiate price, bring extra cash to cover the gap, or cancel if your appraisal contingency permits.

Are leasehold properties common in Kailua?

• Leasehold exists on Oʻahu but is less common in Kailua single‑family homes; if buying leasehold, carefully review the ground lease terms and lender requirements.

How do VA loans affect the timeline and costs?

• VA loans require a Certificate of Eligibility and a VA appraisal; processing can extend the timeline to roughly 30 to 60 days, and seller contributions follow VA rules.

When do I get the keys in a Hawaiʻi closing?

• Keys are typically released at recording or funding based on the contract, usually the same day recording is confirmed.