If you are planning to sell a home in Hawaii, one of the most important documents you will complete is the Seller’s Real Property Disclosure Statement (SRPDS). Many sellers are surprised to learn that this disclosure is not optional in most residential transactions—it is required by Hawaii law and plays a major role in protecting both buyers and sellers during escrow.
What Is a Seller’s Real Property Disclosure Statement?
The Seller’s Real Property Disclosure Statement is a written document in which the seller discloses material facts about the property based on their actual knowledge.
A material fact is anything that could reasonably affect the property’s value or influence a buyer’s decision to purchase. Examples include:
- Roof leaks or past repairs
- Electrical or plumbing issues
- Termite history
- Drainage concerns
- Boundary disputes
- Unpermitted work
- Easements or encroachments
- Neighbor disputes affecting the property
- Catchment, septic, or cesspool issues (common on the Big Island)
Why Seller Disclosures Are Mandatory in Hawaii
Under Hawaii Revised Statutes Chapter 508D, sellers of residential real property are generally required to provide a disclosure statement to buyers.
The purpose of this law is to:
- Protect Buyers
Buyers have the right to understand the known condition of the property before closing escrow. The disclosure helps them make an informed decision and avoid unexpected surprises after purchase.
- Protect Sellers
Providing a complete disclosure reduces the risk of future disputes or liability. If something is properly disclosed in writing, the likelihood of post-closing claims decreases significantly.
- Promote Transparency During Escrow
Real estate transactions in Hawaii rely heavily on disclosure and due diligence. The SRPDS creates a clear starting point for inspections and investigations.
When Must the Disclosure Be Delivered?
Hawaii law requires the disclosure statement to be:
- Signed within 6 months before acceptance, or
- Delivered within 10 calendar days after contract acceptance
After receiving the disclosure, the buyer has 15 calendar days to review it and cancel the contract if they choose, without losing their deposit.
What Happens If New Information Is Discovered?
If a seller later learns something new about the property after completing the disclosure, they are required to update the disclosure promptly.
Disclosure is not a one-time event—it continues through escrow!
When Is a Disclosure Statement Not Required?
Hawaii law recognizes several situations where a Seller’s Real Property Disclosure Statement may not be mandatory. These typically involve transactions where the seller may not have firsthand knowledge of the property.
Common exemptions include:
- Transfers between co-owners
- Transfers to a spouse, parent, or child
- Probate or inheritance transfers
- Court-ordered transfers
- Foreclosure-related transfers
- Bankruptcy-related transfers
- Lease-to-fee simple conversions between landlord and tenant
These are often referred to as “exempt sellers.”
However—and this is important—even when exempt from completing the standard disclosure form, sellers and agents still cannot intentionally misrepresent known material facts.
A Common Big Island Scenario: Estate Sales
On the Big Island, it’s common to see properties sold by:
- trustees
- estates
- personal representatives
Because these sellers may never have lived in the home, they often qualify as exempt from completing the SRPDS.
That said, buyers should still conduct full inspections and due diligence—which is standard practice here anyway, especially in rural areas like Puna, Volcano, Mountain View, and Hamakua.
Vacant Land vs. Residential Property
Another point that surprises many buyers and sellers:
The SRPDS requirement applies primarily to residential real property.
Vacant land transactions often involve different disclosure expectations, although material facts must still be disclosed if known (for example: access issues, SSPP obligations, easements, or encroachments).
Why Accuracy Matters More Than Perfection
The disclosure statement is completed to the seller’s actual knowledge, not based on professional inspection standards.
Sellers are not expected to:
- open walls
- hire engineers
- perform invasive investigations
They are expected to answer honestly and completely based on what they know.
My Advice to Sellers on the Big Island
After more than two decades helping clients buy and sell property across Hawaii Island—including Hilo, Hamakua, North Kohala, Kona, and throughout Puna—the most successful transactions almost always involve clear and thorough disclosures early in escrow.
A well-prepared disclosure:
- builds buyer confidence
- reduces negotiation friction
- prevents escrow delays
- protects sellers from future liability
Most importantly, it keeps the transaction moving forward smoothly.
If you are preparing to sell and have questions about completing the Seller’s Real Property Disclosure Statement—or whether your situation qualifies for an exemption—I’m always happy to help walk you through the process.
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