Moving To Hawaii

Buying Hawaii Real Estate: J-1 Inspection in a Purchase Contract

What is a J-1 Inspection?

I have been questioned a lot lately by several buyers from mainland and Hawaii locals about the J-1 Inspection contingency. The J-1 Inspection refers to a section in the DROA purchase contract where the buyer in question has a time period during escrow to hire a home inspector to verify the property more in-depth. This is the buyer’s opportunity to inspect everything about the property.

Use a Professional Home Inspector

I recommend using a professional home inspector. Sometimes additional inspections are needed by plumbers, carpenters, electricians, roofers, architectural engineer, etc. At any time during this period and for any reason, the buyer has the right to cancel and get all their escrow deposits back. After the inspection is completed and prior to this contingency expiration date, the buyer may ask to have repairs done or a credit. A credit is usually an easier solution for the seller and therefore more likely to get approved. The seller is under no obligation to do any repairs nor give any credit, so it is a negotiated process between buyer and seller. If no agreement can be reached, the buyer has the option to cancel without any consequences. Keep in mind that the ‘’As Is’’ agreement has no impact over this contingency and the buyer can still do everything mentioned above even if the ‘’As Is’’ addendum was added to the Purchase contract. The normal time given for this J-1 contingency is 7 to 15 days.

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