Real Estate Changes

   There have been major changes recently that affect real estate sales in Hawaiʻi.  Effective May 1, 2022, Hawaiʻi became the first state to enact a law that requires Sellers to disclose whether the property being sold is at risk of a sea level rise. To see if a property is within a sea level rise exposure area that requires disclosure, go to the State’s website at www. hawaiisealevelriseviewer.org and enter property risk 3.2.

   Many of the properties along the Waiʻanae Coast are located within this exposure area. These properties are not just along the coastline but include other areas that are susceptible to flooding from streams.

   As of March 28, 2022 Sellers must provide Buyers with disclosure forms specifically indicating whether the property is a legal vacation rental or not. If the Seller indicates that the property is a legal vacation rental, the Seller must also provide the permit number and tax clearance certificates proving that all General Excise and Transient Accommodations taxes have been paid.

   The only two areas in Waiʻanae that are resort-zoned are where the Mākaha Sheraton once stood and within Mauna ʻOlu in Mākaha Valley. Other resort-zoned areas on Oʻahu are parts of Ko Olina, Waikiki and Turtle Bay. Outside of these areas, a Non-Conforming Use Certificate that was issued prior to September 1990 is required. There are currently 24 properties on the Waiʻanae Coast with a certificate and they are all oceanfront condominiums.

   Effective October 23, 2022, short-term rentals must be a minimum of 90 days instead of the current 30 days. Violators will be faced with large fines. There is a grace period for people currently renting legally for 30-89 days, but they must switch over to a minimum 90-day rental as of April 2023. This change is being made in an effort to increase the inventory of long-term rentals.