Aloha. This is George Krischke, with Honolulu Hi 5.
Today, we’re going to talk about what happens between the moment a purchase contract gets accepted
and the moment you get the keys; you as the buyer. That is time period is the escrow time period. What happens in that time period is called the escrow process, and we’ll talk about what happens there.
For most resale transactions, the escrow time period might between 30 to 60 days long. If it’s a cash transaction, the escrow time period could be wrapped up within as little as one week. If you buy a high-rise condominium project that is under construction, it could take possibly 2 years or however long it takes to complete the building.
Once the purchase contract is accepted, means it’s signed by both the buyer and the seller, escrow is opened and the escrow time period starts. The fully executed contract together with the buyer’s earnest money deposit gets deposited with the escrow company. During the escrow time period, there are a bunch of things that happen here. Most purchase contracts have a number of contingencies that need to be removed or satisfied.
Contingencies are either conditions that must be satisfied or events that must occur before a party is obligated to proceed. Some of the contingencies in a regular purchase contract might include the big one, the home inspection contingency for sure, the financing contingency, the condominium document review contingency, and a bunch more.
Once all contingencies have been satisfied, inspection, loan approval, document review / approval, and so on; escrow will have the conveyance documents drafted for the buyer to sign. Conveyance document would be the deed that gets recorded at the Bureau of Conveyances. The seller has to sign it, and all buyer’s funds have to be deposited at a minimum 2 days prior to recordation. Hawaii is a good funds State; it means the money and all documents have to be ready 2 days prior to the recordation date.
Recordation date is the date when you normally would get the keys. Once the recordation takes place, often 2 days after everything is signed, escrow calls us, the realtor, and says, “We have recordation clearance and the transaction has successfully recorded,” and that’s when we usually turn the over the keys.
That’s it. Thanks for watching. ~Aloha.