Escrow & Title
What is 'Hawaii tax withholding' for non-resident sellers and how does it work?
AA. Hawaii imposes no state-level withholding for real estate sales
BB. Hawaii requires withholding of 7.25% of the sales price (with exceptions) when real property is sold by non-resident sellers; withheld from proceeds at closing and remitted to the Department of Taxation✓ Correct
CC. Hawaii withholding only applies to foreign (non-US) sellers
DD. Hawaii withholding equals the federal FIRPTA withholding amount
Explanation
Hawaii's income tax withholding for real estate (HRS Section 235-68) requires withholding of a percentage of the sales price when non-resident individuals or entities sell Hawaii real property. The current rate for non-residents is 7.
People Also Study
Related Hawaii Questions
- In Hawaii, a quitclaim deed transfers:Escrow & Title
- Under FIRPTA, what is the standard withholding rate on the gross sales price when a foreign seller sells U.S. real property?Finance
- A Hawaii broker has $2,450,000 in listings that sell at an average of 96% of list price with a 5% commission. What is the broker's gross commission income?Real Estate Math
- What is the primary purpose of a closing disclosure (CD) in a Hawaii residential transaction?Escrow & Title
- A Hawaii property manager charges 9% of collected rents. Monthly rents collected are $15,000. What is the monthly management fee?Real Estate Math
- In Hawaii, a 'use variance' differs from an 'area variance' because:Land Use & Zoning
- A Hawaii buyer's gross monthly income is $8,000. The lender requires a maximum front-end DTI of 28%. What is the maximum allowable monthly housing payment (PITI)?Finance
- A Hawaii property's potential gross income is $90,000 per year. With a 5% vacancy rate, what is the effective gross income?Real Estate Math
Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →