What is a Quitclaim Deed in Hawaii?
In Hawaii, a quitclaim deed is used to transfer property from an owner (“Grantor”) to a new owner (“Grantee”), without any promises or guarantees about the property’s title. Quitclaim deeds are a quick way to transfer property but they offer the lowest security among real estate deeds in Hawaii.
The most common use of quitclaim deeds is between parties with high levels of trust, such as family members or close friends.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in Hawaii?
The main difference between quitclaim deeds and warranty deeds in Hawaii is that a quitclaim deed provides less security to the Grantee.
A warranty deed provides legal protection to the new owner because it confirms that the Grantor owns the property and has the right to make a transfer.
Warranty deeds are mostly used for real estate transactions in Hawaii. Quitclaim deeds, on the other hand, are used for transfers between family and friends.
How Do Quitclaim Deeds Work in Hawaii?
In Hawaii, land records are centralized at the state level, and maintained by the Bureau of Conveyances.
The language of a state quitclaim deed typically states that the Grantor intends to “release, remise, and quitclaim” the property to the Grantee.
Once prepared, the quitclaim deed must be filed at the Bureau of Conveyances in Honolulu.
Recording System
The Bureau of Conveyances maintains two separate systems for recording real property. When a quitclaim deed is submitted at the Bureau, it will be recorded under one of the following systems:
- Regular System
- Property recorded under the Regular System is governed under Chapter 502 of Hawaii’s Revised Statutes.
- Deeds under the Regular system is maintained by the registrar of conveyances
- Quitclaim deeds recorded in the Regular System are considered to give notice that a document is part of the public record.
- Land Court System.
- Property recorded under the Land System is governed under Chapter 16 of the Hawaii Administrative Rules, titled Rules Relating to Conveyances.
- Deeds in the Land Court system are handled by the assistant registrar.
- Also known as the Torrens System, deeds recorded under the Land Court System receive a state certificate confirming the ownership of a property.
- Quitclaim deeds recorded in the Land Court are those registered with the State after 1900’s.
- Double System
- Quitclaim deeds may also be recorded in both the Regular System and Land Court.
- If the deed qualifies to be recorded in the dual or double system, it will first be recorded in the Regular System, followed by the Land Court.
Can You Prepare Your Own Quitclaim Deed in Hawaii?
You can prepare your own quitclaim deed in Hawaii. A professional drafter is not legally required.
Hawaii Quitclaim Deed Requirements
Formatting standards in Hawaii have been standardized through both statute and county processes, which have been uniformly adopted and standardized throughout the state.
Formatting Requirements
Formatting requirements for quitclaim deeds in Hawaii include:
- Paper size: maximum 8.5x 11 (letter).
- Font: minimum size 10.
- Text: color must be dark and clearly reproducible.
- Margins: leave 3.5 inches on top of the first page for official use.
- Single sided print only.
- Page must be numbered consecutively (beginning with ‘1’).
- Fasten pages with a single staple on the top left.
- Highlighting is not allowed.
First Page Requirements
The following content is required to be on the first page of all quitclaim deeds filed in Hawaii:
- The Grantor’s name and address.
- The Grantee’s name and address.
- Label the 3.5-inch margin as follows:
- The left as “Land Court”
- The right as “Regular System”
- Return name and address (directly below the 3.5-inch margin)
- The title as “Quitclaim Deed.”
- The property’s tax map number (if available).
Content Requirements
The remaining content requirements for quitclaim deeds in Hawaii include:
- Grantee’s marital status.
- If the Grantee is married, include the spouse’s name.
- Taxpayer’s name and mailing address.
- Granting clause – a statement describing the transfer the parties have agreed to.
- If the transfer is made to more than one individual,
- Property address.
- Property’s homestead status.
- Property’s legal description.
- The property description must contain the proper descriptors, including metes and bounds such as section, township, and range, subdivision, each different tract, unit, or block.
- If a secondary document is referenced, information such as the date registered, the book, page, and registration numbers must be mentioned on the deed.
Who Signs a Quitclaim Deed in Hawaii?
For a quitclaim deed to be legally valid in Hawaii, it must be signed by the Grantor. The Grantor’s signature must be acknowledged by a notary public.
How to File a Quitclaim Deed in Hawaii
Here’s how to file a quitclaim deed in Hawaii:
- Determine which of the three Hawaiian property recording systems the deed falls under:
- Regular System
- The label will be on the top right corner.
- The Document number will be as follows:
- Prior to 1990: Liber (book) and Page references. i.e. 12546/552
- From 1990 – 2011: Year followed by a document number. i.e. 1990-002230
- 2012 – Present: Sequential 8 digit numbers.
- Land Court Document numbers:
- The labels will be on the top left corner
- The Document number will be a sequential series of numbers up to 7 digits preceded by the letter ‘T’.
- Double System
- Labels will be on both left and right corners.
- The deed will have two Document numbers, one for each system as mentioned above.
- Regular System
- Prepare the quitclaim deed with the required information.
- Conveyance Tax Certificate.
Based on the consideration amount and the tax due, the quitclaim deed must be accompanied by a tax conveyance certificate:- For transactions qualifying to pay conveyance tax – Form P-64A
- For transactions that are exempt from conveyance – Form P-64B
- Hawaii Residential Real Estate Disclosure.
- All quitclaim deeds used for real estate transactions must be accompanied by an Hawaii Property Disclosure Statement.
- Certificate of Good Standing.
- If a business entity wishes to transfer a property using a quitclaim deed, and the property is recorded under the Land Court System, a Certificate of Good Standing is necessary.
- The certificate can be obtained from the Business Registration Division of the Department of Commerce and Consumer Affairs.
- Once the quitclaim deed is executed, ensure the Grantor’s signature is acknowledged before a notary public.
- Once prepared, the quitclaim deed must be filed at the Bureau of Conveyances in Honolulu.
How Much Does it Cost to File a Quitclaim Deed in Hawaii?
In Hawaii, the charges for filing a quitclaim deed is set by the Department of Land and Natural Resources. The fee depends on where the deed is finally recorded and is as follows:
Land Court:
- Recording fee for deeds up to 50 pages – $36.
- Recording fee for deeds 51 pages or more – $101.
Regular System:
- Recording fee for deeds up to 50 pages – $41.
- Recording fee for deeds 51 pages or more – $106.
What Taxes Are Owed on Quitclaim Deeds in Hawaii?
In Hawaii, the transfer of property using a quitclaim deed triggers conveyance tax levied as follows:
- Tax rates (per $100) for general property transfers based on property value:
- Under $600,000: $0.10
- Between $600,000 – $1,000,000: $0.20
- Between $1,000,000 – $2,000,000: $0.30
- Between $2,000,000 – $4,000,000: $0.50
- Between $4,000,000 – $6,000,000: $0.70
- Between $6,000,000 – $10,000,000: $0.90
- Over 10,000,000: $1.
- Tax rates (per 100) for condominiums or single-family residences without homeowner’s exemption, based on property value:
- Under $600,000: $0.15
- Between $600,000 – $1,000,000: $0.25
- Between $1,000,000 – $2,000,000: $0.40
- Between $2,000,000 – $4,000,000: $0.60
- Between $4,000,000 – $6,000,000: $0.85
- Between $6,000,000 – $10,000,000: $1.10
- Over 10,000,000: $1.25
- Many transfers that are generally filed under quitclaim deeds are exempt from Hawaii’s conveyance tax, including:
- Transfers involving consideration of $100 or less.
- Deeds confirming or correcting previously recorded documents.
- Transfers between family members with nominal consideration.
- Documents partitioning property equally among owners.
- Instruments between marital partners in divorce or termination actions.
Moreover, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
How Long Does a Quitclaim Deed Take to be Recorded in Hawaii?
Most quitclaim deeds submitted to the Bureau of Conveyances are processed within four to six weeks.
What Happens After a Quitclaim Deed is Recorded in Hawaii?
When a quitclaim deed is submitted to the county Bureau of Conveyances, it will first be examined to ensure compliance with Hawaii’s three systems: Regular, Land Court, and Dual.
Next, the document will be endorsed, indexed, scanned, and microfilmed. Hawaii deeds undergo extensive checks before being filed under the appropriate system in the state’s land records. Once completed, the original documents are returned to the customer.
How Long Are Quitclaim Deeds Valid For in Hawaii?
There is no expiration for quitclaim deeds in Hawaii. However, the statute of limitations for a breach of a written contract is 6 years.
Sources
- 1 Kondaur Capital Corp. v. Matsuyoshi
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Kondaur Capital Corp. v. Matsuyoshi
361 P.3d 454, 136 Hawaii 227 (Haw. 2015)In relevant part, the quitclaim deed recited that… does hereby release, remise and quitclaim unto [Kondaur]… personal representatives, successors and assigns, all of that certain real property described in Exhibit “A” attached hereto and made a part hereof.
- 2 Hawaii Revised Statutes §502-83
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Effect of not recording deeds, leases, etc., All deeds, leases for a term of more than one year, mortgages of any interest in real estate, or other conveyances of real estate within the State, shall be recorded in the bureau of conveyances…
- 3 Recording System
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I. Bureau of Conveyances Hawaii
“…The Bureau examines, records, indexes, and digitizes over 344,000 Regular System and Land Court documents and maps annually; issues Land Court Certificates of Title; certifies copies of matters of record; and researches UCC requests. Hawaii is one of two states in the nation with a single statewide recording system…”
II.Two Land Recording System (Mardfin, 1987)
Whenever real property is bought and sold in Hawaii, evidence of ownership of that real property and notice of encumbrances can be established through one of two ways. One way is the method established by the Civil Code of 1859.. This
system is referred to as the “regular system” and is codified in chapter 502,
Hawaii Revised Statutes. A second way of establishing ownership to real property is provided in chapter 501, Hawaii Revised Statutes..
- 4 HI Rev. Stat. §502-31 (c)(e)
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Recording, method. (c) The registrar may refuse to accept for record any document of a size larger than eight and one-half inches by eleven inches..
(e)..and the top three and one-half inches of space of the first page shall be reserved for recording information for the assistant registrar on the left half of such space, and for the registrar of conveyances on the right half of such space… consists of more than one page, each page shall be single-sided sheets of written text numbered consecutively, beginning with number one, and shall be stapled once in the upper left corner…
- 5 HI Rev. Stat. §502-31 (e)
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.. In addition, the first page shall identify and include, if possible, all names of the grantors and all names and addresses of the grantees, the type of document, and the tax map key number..
- 6 HI Rev. Stat. §502-31 (e)
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..and the top three and one-half inches of space of the first page shall be reserved for recording information for the assistant registrar on the left half of such space, and for the registrar of conveyances on the right half of such space..
- 7 HI Rev. Stat. §501-105 (a)
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Every deed or other voluntary instrument presented for recording shall contain or have endorsed upon it.. the full name or names, if more than one, and the address of the grantee .. or have endorsed upon it a statement that the grantee is married or unmarried, and if married, the statement shall give the name in full of the husband or wife.
- 8 Acknowledgement
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I. HI Rev. Stat. §502-31 (b)(e)
Recording, method. (b) All names of all natural persons signing in their individual capacity shall be typewritten, stamped, legibly printed by hand, or by a mechanical or electrical printing method beneath all signatures….
(e) All instruments to be recorded shall include the original signature..
Certificate of acknowledgment; natural persons, corporations. Except as otherwise provided by law, to entitle any conveyance or other instrument to be recorded, there shall be endorsed, subjoined, or attached thereto an acknowledgment in the form provided or authorized..
The certificate of acknowledgment shall state in substance that the person who executed the instrument appeared before the notary public granting the certificate and acknowledged or stated that the person executed the same..
- 9 Bureau of Conveyances Hawaii - FAQ
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How do I know what system my document was recorded in? Regular System Document numbers: Prior to 1990: Liber (book) and Page references. i.e. 12546/552..
- 10 HI Rev. Stat. §247-6 (a)(b)
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Certificate of conveyance required. (a) Any party.. shall file, in the manner and place which the director of taxation shall prescribe, a certificate of conveyance setting forth the actual and full consideration of the property transferred.. (b) No certificate is required to be filed for any document or instrument made exempt by section 247-3..
- 11 HI Rev. Stat. §508D-5
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Delivery of disclosure statement to buyer; procedures.. No later than ten calendar days from acceptance of a real estate purchase contract, the seller, either directly or through the seller’s agent, shall provide the disclosure statement to the buyer…
- 12 Certificate of Good Standing
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I. HI Land Court Rule 58(2)
The assistant registrar has verified the existence and good standing of any grantee, assignee, lessee or mortgagee which is a corporation, partnership, limited liability partnership, limited liability company, or other legal entity incorporated or organized in the state; or there is presented as to any grantee, assignee, lessee or mortgagee which is a foreign corporation, partnership, limited liability partnership, limited liability company or other legal entity..
II. Department of Commerce and Consumer Affairs
.. determine whether a company/entity exists and if it is in good standing and also to provide basic information on the company/entity. Contact the Department of Commerce and Consumer Affairs – Business Registration Division..
- 13 Fees
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(a)Except when otherwise provided, fees for services rendered under this chapter shall be established by rules adopted by the department of land and natural resources, pursuant to chapter 91…
Recording Fees
- 14 HI Rev. Stat. §247-2 (1)(2)
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Basis and rate of tax. The tax imposed.. shall be based on the actual and full consideration… for all transfers or conveyance of realty..(1) Ten cents per $100 for properties with a value of less than $600,000.. (2) For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner’s exemption on property tax.. Fifteen cents per $100..
- 15 HI Rev. Stat. §247-3
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Exemptions.The tax imposed by section 247-1 shall not apply to..Any document or instrument that only confirms or corrects a deed..conveyance previously recorded or filed.. Any document or instrument between husband and wife.. Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
- 16 657
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Six years. The following actions shall be commenced within six years next after the cause of action accrued, and not after: (1) Actions for the recovery of any debt founded upon any contract, obligation, or liability, excepting such as are brought upon the judgment or decree of a court..