In other parts of the world, including the United States, lawyer’s direct real estate transactions. Here in Hawaii, in addition to using a real estate Brokers and Associates, we utilize an aggregation of Title and Escrow . Learn more about escrow responsibilities, taxes and preferred companies in Maui.
Escrow Responsibilities
Escrow can be described as an impartial third party that handles the closing of a real estate transaction. While remaining fair and neutral, the escrow officer acts as an intermediary between the buyer and seller ensuring contingencies are met. Their biggest responsibility and task are handling monies. Escrow facilitates all prorations including rental, HOA, property taxes, assessments, and more.They also provide ALTA or title insurance.
Taxes
Coupled Purchasing or Selling, Escrow provides Closing Statements for your taxes. Responsible for paying a withholding tax?Escrow will provide a N288B Form to apply for an exemption. If denied, they will then supply a N288C form. The day of Closing the N288C Form can be filed for your Return. Again, these are short two page forms that your CPA can overlook and file immediately. You do not need to wait till the following tax year for HARPTA, only FIRPTA.
After reviewing the Hawaii Standard Purchase Agreement, F-4 is labeled Escrow. Keep in mind, the Buyers get to choose the Escrow company. So, who are your choices?
Escrow Companies
There are a handful of Escrow choices. Favorably, Kimberly prefers Fidelity National Title. Ultimately, it is the Buyer’ decision. Please view all the provided companies below.
- Fidelity National Title & Escrow of Hawaii
- Title Guaranty
- First American Title
Finally, to get better educated on purchasing in Hawaii, phone Living Maui Real Estate, LLC. They will provide PDFs, attachments, stats, and other documents for review and consideration. Remember, if you are in the Kaanapali area, contact Kaanapali Kimberly for your real estate questions and updates.