PURCHASES ON EASY TERMS
Where a purchase is made with a down payment and the
balance paid over a period of time a Contract will be signed by the Seller
and Buyer that sets out the basic terms and conditions of the transaction
which will include, among other things, the price, down payment, payment
balance, interest rate, and length of term.
While the title to the property will not pass to the
Buyer until the balance shown on the Contract is paid in full, the buyer may
enjoy full occupancy and use of the property immediately upon execution of
the Contract. Once the terms and conditions of the Contract have been
fulfilled and the balance paid off, the Buyer will be delivered a Warranty
Deed that conveys to the Buyer a full, unencumbered fee simple interest in
the property. In the Warranty Deed the Seller will warrant not only that
he is the owner of the property, but that the property is free and clear of
any liens or encumbrances.
The Contract will require the buyer to make the
requisite payments on time, pay the Real Property Taxes and subdivision
dues, if any, and abide by the County of Hawaii Building Codes and the
particular subdivision’s Codes, Covenants, and Restrictions, if any.