Escrow in Kauai usually lasts 30-60 days. A lot happens during this time, but your real estate professionals handle most. Here is a brief outline of what is to come:

• Deposit Earnest Money – Your earnest money, also referred to as a “good faith deposit,” will be the first step. This money will be held in a third-party account. If the transaction were to fall through, that third party would have to decide who the money gets returned to based on what the contract says.
• Inspection Period– You have 14 days to conduct all necessary inspections. You will receive disclosures that outline any defects or previous issues like flooding or storm damage in the home. You should also research any special assessments that may be charged to the property and who will pay for them. Most importantly, you should hire a licensed home inspector to ensure all the home’s mechanical systems are in working order. You can ask the seller to repair anything that is found to be defective. Your real estate agent will help with that.  During this time, if you discover anything that is too much of a problem, you can walk away from the transaction without penalty.

• Get an Appraisal – Your lender will order an appraisal to determine the property’s value. A lender will not lend more than the appraised value, so it is important to research the value before agreeing to a purchase price to avoid delays in closing. Appraisals are paid for by the buyer, and in Kauai, they usually cost about $600.
• Work Toward Loan Approval – You will have to submit bank statements, tax returns, pay stubs and other documents to your lender. If your lender decides you are qualified, you will be approved for a loan.
• Final Walk-Thru – You will take one last look at the home to ensure the sellers have moved all of their belongings and made any repairs you agreed upon.
• Sign Closing Documents – You’ll sign the title transfer, loan documents, and deed to the home and will also pay any closing costs and transfer fees.