Marcus is purchasing a fee simple home in Hawaii Kai. The seller's disclosure statement under HRS Chapter 508D reveals that the property may be subject to native Hawaiian traditional and customary access rights across a portion of the backyard. Marcus had not been aware of this before signing the contract. Which of the following is most accurate regarding these rights?
Correct Answer
D) Native Hawaiian traditional and customary access and gathering rights can encumber private property and are not extinguished by a fee simple deed or title insurance
Under the Hawaii Constitution and HRS Section 1-1, native Hawaiian traditional and customary access and gathering rights are legally recognized and can encumber private property. These rights survive the transfer of fee simple title and are not eliminated by title insurance. This is a unique encumbrance specific to Hawaii that does not exist in other states, and it is a heavily tested topic on the Hawaii state exam.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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