Which property type is exempt from the Hawaii real estate disclosure requirements?

In Hawaii, commercial properties are exempt from the real estate disclosure requirements that apply to residential properties, such as one-to-four dwelling units, condominium units, and vacant land. This exemption stems from the understanding that the commercial real estate market operates differently compared to residential real estate.

The rationale behind this exemption is that commercial transactions often involve parties who are expected to conduct their own due diligence. Buyers of commercial properties typically have more expertise and resources at their disposal to investigate the property thoroughly, reducing the necessity for the seller to disclose specific conditions or issues that might be relevant.

In contrast, residential properties, including one-to-four dwelling units and condominium units, require more stringent disclosure to protect the interests of less experienced buyers who may not be as equipped to understand underlying issues with a property. Vacant land also often falls under this same consideration, depending on how it’s classified and used, but commercial properties are specifically recognized as requiring less disclosure due to the nature of commercial transactions.