Are Contract for Deed deals allowed in Hawaii?

[Michael Gayer Jr]

Aloha Hawaii Property Investors,

Are Contract for Deed deals allowed in Hawaii?

Can you tell me your perspective on Contract for Deed deals?

Thank you in advance,

Mike

[Nicholas Cornford]

Hey Mike,

Contract for deeds are legal here but you need to have an attorney draft it up so that it is done correctly.  Also is there an existing mortgage in place or is it owned outright?  If there is a mortgage in place there is usually a "due on sale clause"  so the bank could call the loan due upon transfer of the deed.  I have heard of people doing it all the time and never heard the back actually calling the loan as long as the mortgage is getting paid.  Just something to keep in mind.

Hope this helps,

Nick