Kai Ioh | Nov 2025
If you’re buying or selling real estate in Hawaii for the first time, you might be wondering:
“What happens between offer acceptance and closing?”
Or: “What exactly is the escrow period?”
In Hawaii (an escrow state), we don’t use attorneys to close real estate deals. Instead, a licensed escrow company acts as a neutral third party, managing everything from holding funds to verifying title and coordinating final recording.
Once the buyer and seller agree to terms and the purchase contract is signed, the escrow period begins.
Let’s walk through what typically happens over the course of 30 to 45 days—step by step.
Typical Escrow Timelines
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Cash purchase: ~30 days
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Financed purchase (with a mortgage): ~45 days
Below is a sample timeline based on a 45-day escrow, which is common when financing is involved.
The Escrow Timeline: Day-by-Day Breakdown
Day 0: Offer Accepted = Escrow Opens
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Buyer and seller sign the purchase contract
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Escrow is officially opened with a neutral third-party escrow company
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Buyer deposits earnest money within 3 business days (unless otherwise agreed)
Days 1–14: Due Diligence & Inspection Period
This is the buyer’s opportunity to fully inspect the property and cancel for any reason within this period (per the standard Hawaii contract). This period is also called the J-1 Contingency period. While 14 day inspection period is typical, it may be longer or shorter depending on the property and situation. The J-1 period is not set thus it is one of the important negotiation points before going into escrow.
Common activities during J-1 perdiod include:
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Home inspection
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Termite inspection provider selected
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Review of the preliminary title report
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Receipt and review of Seller’s Property Disclosure Statement (SPDS)
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Escrow sends out opening documents for both parties to review and sign
⚠️ If issues arise, the buyer may negotiate repairs, or cancel the deal and receive a full refund of the earnest deposit. Or in some cases, a price adjustment.
Days 15–30: Loan Processing, Appraisal & Title Review
If the buyer is obtaining financing, this period is focused on loan approval and verifying all documentation.
Tasks often include:
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Appraisal ordered by the lender
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Termite inspection conducted
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Interim deposit made (if applicable)
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Review of HOA documents and house rules (if applicable)
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Title commitment confirmed
- Survey
⚠️ If new disclosures or defects are discovered during this phase, buyers may be able to renegotiate or exit the contract based on contingencies.
Days 31–40: Final Approvals & Signing Preparation
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Loan is fully approved (final underwriting)
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Termite report and clearance submitted
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Survey map and staking report reviewed (if required)
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Deed, closing statements, and transfer documents prepared
At this point, escrow will begin scheduling signing appointments with both parties.
Days 41–42: Final Walkthrough & Utilities
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Property is professionally cleaned
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Buyer conducts final walkthrough to confirm property condition
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Utilities (electricity, water, internet, etc.) are scheduled for transfer
This is the last chance for buyers to flag any issues before closing.
Day 43: Funds Delivered to Escrow
To close on time, all funds must be received by escrow at least 48 hours before the scheduled closing date.
This includes:
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Loan proceeds from the lender
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Remaining down payment and closing costs from the buyer
Day 45: Closing & Recording
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Escrow releases funds to the seller
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The deed is recorded with the Bureau of Conveyances
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Ownership is officially transferred
🎉 Congratulations—you now own (or have sold) property in Hawaii!
A Note on Flexibility
Every transaction is different. The timeline above is a general framework, but actual dates may shift based on:
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Financing delays
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Title or appraisal issues
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HOA document delivery
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Holiday schedules
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Contract negotiations
That said, the escrow company and real estate agent work closely to keep everything on track—and resolve issues early whenever possible.
Final Thoughts: Why Understanding the Escrow Timeline Matters
If you’re used to attorney-led closings, Hawaii’s escrow process might feel different at first.
But once you understand the flow, it actually makes a lot of sense—and provides a transparent, efficient, and secure path to closing.
Having a clear roadmap can help reduce stress, avoid surprises, and make your Hawaii real estate experience more enjoyable.
If you’re thinking about buying or selling a home on the Big Island or anywhere in Hawaii, let’s talk. I’m happy to walk you through the timeline, the local process, and what to expect—step by step.