Material Facts
Why Is "Full Disclosure" Important?
Under Hawaii state law Realtors and Sellers must disclose certain information to Buyers. Full disclosure is required to help Buyers wade through the information they need to fully assess the property to negotiate price and assess the property’s suitability for their needs. Agents and the Seller are required to disclose all identifiable hazards on a property—as well as other factors that may impact the property’s price and value. These are known as “Material Facts”. See this link for the Hawaii government definition.
What Kinds of Information Must a Real Estate Agent or Broker Disclose?
In real estate transactions, to “fully disclosure” typically means that the seller must disclose any property defects and any other important information that could have an effect on a party's decision to enter into the deal. A seller must fill out a Seller’s Real Property Disclosure Form (SRPDS).
Under Hawaii state law Realtors and Sellers must disclose certain information to Buyers. Full disclosure is required to help Buyers wade through the information they need to fully assess the property to negotiate price and assess the property’s suitability for their needs. Agents and the Seller are required to disclose all identifiable hazards on a property—as well as other factors that may impact the property’s price and value. These are known as “Material Facts”. See this link for the Hawaii government definition.
What Kinds of Information Must a Real Estate Agent or Broker Disclose?
In real estate transactions, to “fully disclosure” typically means that the seller must disclose any property defects and any other important information that could have an effect on a party's decision to enter into the deal. A seller must fill out a Seller’s Real Property Disclosure Form (SRPDS).
| Sellers_Real_Property_Disclosure_Statement.pdf |
Disclosing Known Hazards and Defects
Under federal law, you must disclose the presence or possibility of lead-based paint if your house was built before 1978. (See the Environmental Protection Agency brochure)
Seller must also disclose material defects involving:
- Termite, pest, and mold issues,
- Structural defects (such as roof and foundation issues),
- Sewer and plumbing issues,
- Natural hazard risks (such as being located within a flood or seismic zone),
- Any other relevant issues such as shared walls, known encroachments
- Or any that may apply.
Sellers must disclose known defects and hazards to the best of their ability. Some material facts are not easily known and may require more research through public records, online sources or third party verifications.
Disclosing Other Factors
In addition to disclosing known and suspected hazards, owners should disclose or clarify other information that would impact the value of a sale, if known. These include:
- Why are you selling?
- Your agent needs to know what you want disclosed. You don’t have to tell the public you are desperate or selling because of a divorce or health condition, but if you want it known for a fast sale, then this should be in writing.
- Any special rules or conditions such as House Rules, View Planes, or Building restrictions or known conditions that are causing values to change. This might be a new building that may block views, zoning changes or pending construction such as rail or road widening.
- Or any other considerations that might affect value.
