Aloha, this is George Krischke with Honolulu HI 5 (company now called Hawaii Living).
Another very common and important contingency in Hawaii’s real estate purchase contracts is the termite inspection contingency. It gives the buyer the right to select a professional termite inspector to do a termite inspection and review the report within a certain time period. Often, the seller will actually pay for that termite inspection, at least up to a certain amount per the terms of the contract.
Now if the termite inspection reveals live termite infestation, the seller will be responsible for the treatment of the live infestation, but not the repair of the damage. And that needs to take place within a certain time period. The buyer’s purchase of the property is contingent on the termite inspection report stating that there is no visible live infestation, or if there is live infestation, it is contingent on the treatment of the live termite infestation within a certain time period.
If neither occurs, then the buyer has the right to cancel the contract and walk away, but it needs to be in writing, and it needs to be within the certain time period as specified in the contract. If the buyer does not cancel within the certain time period, the buyer will have automatically waived his right to cancel the contract based on that contingency.
That’s it for today. Until next time, Aloha.