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Property Disclosure Statement Guide: What Landlords, Tenants, and Investors Need to Know

Learn everything about property disclosure statements, including legal requirements for sellers, what tenants should know when their rental is being sold, and how investors can protect themselves during transactions.

Introduction

A Property Disclosure Statement is a legally significant document that requires property sellers to reveal known material defects and issues with a property. Whether you're a tenant whose rental home is being sold, a landlord selling your rental property, or a real estate investor managing multiple properties, understanding disclosure requirements is crucial to protect your interests and avoid potential legal disputes. This guide explains what property disclosure statements entail, who needs to complete them, what must be disclosed, and how these documents affect different parties in real estate transactions.

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Key Things to Know

  1. 1

    Property disclosure requirements vary by state, so always check your local laws or consult with a real estate attorney to understand specific obligations in your area.

  2. 2

    Disclosure statements typically cover known issues only—sellers generally aren't required to hire inspectors to discover unknown problems.

  3. 3

    For landlords selling rental properties, tenant-reported maintenance issues should be included in your disclosures, even if you haven't personally verified them.

  4. 4

    Tenants' lease rights are generally protected when a rental property is sold; the new owner typically must honor existing lease terms.

  5. 5

    Real estate investors should maintain detailed property records and consider pre-listing inspections to facilitate accurate disclosures.

  6. 6

    Selling a property 'as-is' does not exempt sellers from disclosure requirements—you must still disclose known material defects.

  7. 7

    The consequences of inadequate disclosure can include lawsuits, monetary damages, rescission of the sale, and significant legal expenses.

  8. 8

    When in doubt about whether to disclose something, the safer legal approach is to include it in your disclosure statement.

Key decisions before you file

Before you file a Property Disclosure Statement in Hawaii, a few decisions shape the document: which option to choose and what each one means. The Property Disclosure Statement guide walks through them.

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Hawaii Requirements for Property Disclosure Statement

  • Hawaii Seller Disclosure Law (Hawaii Revised Statutes § 508D)

    Requires sellers to disclose all material facts about the property, including any defects that could affect its value or desirability. This is the primary state law governing property disclosures in Hawaii.

  • Disclosure Statement Timing (Hawaii Revised Statutes § 508D-5)

    Mandates that the disclosure statement must be delivered to the buyer no later than ten calendar days after the acceptance of a real estate purchase contract.

  • Disclosure of Material Facts (Hawaii Revised Statutes § 508D-8)

    Requires disclosure of all material facts concerning the property that are within the knowledge or control of the seller, including conditions affecting the property or defects in major components.

  • Flood Zone Disclosure (Hawaii Revised Statutes § 508D-15)

    Requires disclosure of whether the property is located in a special flood hazard area as designated by the Federal Emergency Management Agency.

  • Lead-Based Paint Disclosure (42 U.S.C. § 4852d; 40 CFR Part 745)

    Requires disclosure of known lead-based paint hazards in housing built before 1978, providing buyers with a 10-day period to conduct a risk assessment or inspection for lead-based paint hazards.

  • Residential Leasehold Disclosure (Hawaii Revised Statutes § 508D-3)

    Requires specific disclosures for properties that are leasehold rather than fee simple, including terms of the lease, rent renegotiation provisions, and expiration dates.

  • Planned Community Associations (Hawaii Revised Statutes § 508D-3.5)

    Requires disclosure of any planned community association that the property is subject to, including any mandatory fees, assessments, or restrictions.

  • Condominium Property Regime (Hawaii Revised Statutes § 514B-94)

    Requires specific disclosures for properties subject to a condominium property regime, including association documents, bylaws, and financial information.

  • Sex Offender Registry Information (Hawaii Revised Statutes § 508D-10.5)

    Requires disclosure that information about registered sex offenders is available to the public via the Hawaii Criminal Justice Data Center website.

  • Military Training Areas (Hawaii Revised Statutes § 508D-15)

    Requires disclosure if the property is within one mile of a military training area, which may subject the property to noise, dust, smoke, or other impacts.

  • Airport Noise Exposure Areas (Hawaii Revised Statutes § 508D-15)

    Requires disclosure if the property is within a noise exposure area as determined by the State Department of Transportation, which may subject the property to aircraft noise.

  • Methamphetamine Production Disclosure (Hawaii Revised Statutes § 508D-13)

    Requires disclosure if the property was used for methamphetamine production, unless the property has been properly remediated according to state standards.

  • Burial Sites (Hawaii Revised Statutes § 508D-7)

    Requires disclosure of any burial site on the property that the seller has knowledge of, as defined under chapter 6E.

  • Coastal Property Disclosure (Hawaii Revised Statutes § 508D-15)

    Requires disclosure of special management areas, shoreline setback requirements, and coastal erosion hazards for properties near the ocean.

  • Lava Zone Disclosure (Hawaii Revised Statutes § 508D-15)

    Requires disclosure if the property is located in a lava zone, particularly on the Big Island, which may affect insurance availability and rates.

  • Radon Gas Disclosure (EPA Indoor Air Quality Guidelines; HRS § 508D-8)

    While not specifically required by Hawaii law, federal guidelines recommend disclosure of known radon hazards as part of general material fact disclosure.

  • Mold Disclosure (Hawaii Revised Statutes § 508D-8)

    Requires disclosure of known mold issues as part of material facts that could affect the value or desirability of the property.

  • Asbestos Disclosure (Hawaii Revised Statutes § 508D-8; Asbestos Hazard Emergency Response Act)

    Requires disclosure of known asbestos-containing materials in the property as part of material facts disclosure.

  • Termite Inspection Disclosure (Hawaii Revised Statutes § 508D-8)

    Common practice in Hawaii to disclose termite inspection reports and any history of termite treatment or damage, particularly important due to Hawaii's tropical climate.

  • Rescission Rights (Hawaii Revised Statutes § 508D-5)

    Provides buyers with the right to rescind the purchase contract within 15 calendar days of receipt of the disclosure statement if it was not provided before the acceptance of the offer.

Frequently Asked Questions