Sales
are advertised in the Hawaii Tribune Herald, Honolulu Star-Bulletin, and West
Hawaii Today. The first printing is four (4) weeks prior to the sale and again
weekly. You may also find the "Notice of Proposed Sale of Real Property for
Failure to Pay Real Property Taxes Due Thereon" on our web site: www.hawaiipropertytax.com –
click on "Tax Sale FAQ", then click on "List of Parcels for Tax
Sale", scroll down and again click on "List of Parcels for Tax Sale".
For general
information with regard to ownership, values, and size of parcels etc,
see: www.hawaiipropertytax.com
on the web.
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HOW
& WHEN DO I REGISTER FOR THE SALE?
There
is no registration for this live public auction.
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WHAT
TYPE OF PAYMENT REQUIREMENTS ARE NEEDED AT THE SALE?
We
accept cashier's checks, money orders, travelers checks or cash.
No personal checks. No credit cards.
We recommend a
cashier's check payable to yourself for the maximum amount you intend
to bid. If you are a successful bidder, you can endorse the check over
to the County Director of Finance (any overage will be returned to you
in the form of a County check).
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IS
PAYMENT IN FULL REQUIRED ON THE DAY OF THE SALE?
Yes,
immediately following the successful bid. You must have the full
payment with you as you will not be allowed to leave the building
to get payment.
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DOES
YOUR COUNTY OFFER A FINANCING PROGRAM?
No.
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WHAT
TYPE OF DOCUMENT IS ISSUED AT THE SALE?
The County will draw
up and record a tax deed in the purchaser's name. The recorded tax deed
will be mailed to the purchaser approximately 2-3 months after the sale.
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WHAT
IS A TAX DEED?
A tax deed is similar
to a quitclaim deed. The County passes the title on "as is" and makes no
warranties to the purchaser.
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CAN
TITLE INSURANCE BE ACQUIRED?
In most instances,
the title company who did the title search may be able to offer title
insurance to the purchaser. Please contact the title company directly.
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WHEN
DOES THE TITLE PASS?
The title to the
property passes upon the sale and recording of the deed. The tax deed
will be in your name with a reservation for the redemption period.
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ONCE
A PROPERTY IS ACQUIRED THROUGH THE SALE, IS THERE A REDEMPTION PERIOD?
Yes,
the prior owner may redeem the property within one year from the date of
the sale. If the prior owner contacts you and pays the sale price plus 1%
per month interest, he may reclaim his property. As long as contact is
made within the one year period, the previous owner has exercised his right
and may be entitled to redeem. Please note, the previous owner will contact
you directly, the County is not involved in the redemption process.
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CAN
I BUILD OR SELL DURING THE REDEMPTION PERIOD?
We
do not recommend that you build during the redemption period as the prior
owner is under no obligation to pay you for any improvements that you make
to the property. You may, however, be entitled to collect certain other
sums you may have expended to keep the title in good standing, such as real
property taxes and maintenance fees. You may sell or transfer the property
within the redemption period, but be sure to advise the buyer and include
the redemption provision in your deed to
avoid problems in your transfer.
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IF
THE PROPERTY IS REDEEMED, DOES THE INVESTOR EARN INTEREST DURING THE
REDEMPTION PERIOD?
Yes.
12% is the annual interest rate.
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DO
YOU ALLOW INVESTORS TO INVEST AT THE SALE WITHOUT ATTENDING THE SALE (I.E.
ABSENTEE BIDDING)?
No,
we do not allow absentee bidding, however, you may send a representative
to bid on your behalf. Persons bidding at the auction as representatives
or agents of others must have a notarized statement naming them and stating
that they have full power and authority to sign all necessary documents on
behalf of the new owner. Further, they will need the following information to
complete the necessary documents after a successful bid:
- Full first, middle and last name of the person in
whose name the deed will be recorded.
- Full first, middle and last name of the spouse of
the person in whose name the deed will be recorded.
- Mailing address and contact phone numbers of the person
in whose name the deed will be recorded.
- What method of ownership in which the new owner wishes to
hold title.
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WILL
MY PROPERTY BE FREE AND CLEAR OF ALL LIENS?
The
County of Hawai`i, Real Property Tax Division (RPT), makes every effort
to provide you with a free and clear title, however, it is not able to
guarantee that. Therefore, you still purchase the property "as is" and
may be required to clear all recorded liens on your own. The County has
taken the following steps to help you in this matter:
- The County has ordered title reports and made every effort
to put all owners and lienholders on notice of the pending
tax foreclosure sale. Copies of the notices and return
receipts of those notices are on file with RPT and you may
purchase copies if necessary.
- The County published notices in the local and statewide
newspapers to provide notice to the public of the pending
sale.
- The County has adopted Section 19-42, Hawai`i County Code,
which states that title in the tax deed shall be free and
clear of all liens. To date, the County is unaware of any
challenge to its ordinance, but issues this warning, "the
constitutionality or legality of that section has not been
decided by the courts".
- The County will attempt to eliminate all recorded liens
(other than Federal) from the title for recording with the
Bureau of Conveyance or Land Court. These do not include
covenants, grants of easements or other encumbrances that
run with the land.
However, it should be clearly stated that the properties are still being sold
"as is" and the County will not warrant their title or represent the successful
purchaser in any title disputes.
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DOES
THE COUNTY WARRANT THE REPRESENTATIONS MADE IN THE FIELD INSPECTION REPORTS?
The
field inspections are done by the RPT division staff and try to provide
as accurate a picture as possible about the condition of the property on
the date of the inspection. Once again, the County does not warrant any
of the information contained in the field inspection regarding the condition
of the land or any structures. Misrepresentations in the field inspections
or title reports will not be grounds for cancellation of the sale.
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WHAT
HAPPENS TO THE SURPLUS? CAN IT PAY OFF THE LIENS?
Any
money collected above the upset price is considered surplus money. After
the sale, the County will notify all lienholders that they have a right
to make claims against the surplus. When the County pays off the lienholders,
the County will seek a satisfaction and release of lien from the lienholder,
which the successful purchaser may file with the Bureau of Conveyance or
Land Court to help clear the title. Any additional surplus funds can then
be claimed by the previous owner.
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HOW
DO I GET RID OF THE LIENS?
If
the County is unable to provide you with releases, you may contact the
lienholders on your own and seek releases from them. In many instances,
the liens are no longer valid or were previously paid and no one bothered
to record a release. Once you receive the release, it should be recorded
with the Bureau of Conveyance or Land Court, depending on where your deed
is recorded.
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WHAT
ABOUT FEDERAL TAX LIENS?
Once
again, the County sells the property "as is". The federal government has
indicated that they will monitor our sales and where they feel the sale was
inadequate, they may seek to foreclose on the property. Should they seek
such action, they would reimburse the purchaser.
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DO
YOU KEEP A MAILING LIST?
No, we do not keep a mailing list, however, if you provide us with $1.00
and a self addressed, stamped (2 oz. postage) envelope, we will mail you
a tax sale list 4 weeks prior to the next sale.
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IS
THERE A CHARGE FOR THE LIST OF CURRENT PROPERTIES ON THE TAX SALE?
Yes,
the charge is $1.00 per list. The list is also available free on our website
or in the newspapers 4 weeks prior to the sale.
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