What is the typical cost-sharing arrangement for title insurance in Hawaii?

In Hawaii, the typical cost-sharing arrangement for title insurance is that the buyer pays 40% while the seller pays 60%. This customary practice reflects the negotiation dynamics typically present in real estate transactions within the state. Under this arrangement, sellers often cover a greater share of the title insurance costs, which can be an incentive to attract buyers.

This division of costs is rooted in local market practices and may vary depending on the specific terms negotiated in the purchase contract. Understanding this breakdown is essential for both buyers and sellers as they prepare for the financial implications of closing a real estate transaction. A clear grasp of these customary practices can aid in better negotiations and lead to smoother transactions in the Hawaii real estate market.