Marcus is a real estate licensee helping a buyer finance a home purchase in Kailua. The buyer asks whether Hawaii is a community property state and whether that affects how the mortgage will be structured for a married couple. Marcus should correctly advise the buyer that:
Correct Answer
B) Hawaii is not a community property state; it follows common law principles, though married couples may hold title as tenants by the entirety
Hawaii is NOT a community property state. It follows common law (separate property) principles, meaning property acquired by one spouse is generally that spouse's separate property unless titled jointly. However, Hawaii does recognize tenancy by the entirety, a form of joint ownership available only to married couples that includes rights of survivorship and certain creditor protections. This distinction is important for how mortgages and title are structured for married couples in Hawaii.
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Related Topics & Key Terms
Key Terms:
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