In a Hawaii real estate transaction, trust funds are placed with a neutral escrow depository for Hawaii property. What should the licensee remember?
Correct Answer
A) The neutral escrow depository must be located in the same state where the property is located
HAR 16-99-4 requires the neutral escrow depository to be located in the same state where the property is located. Source basis: Hawaii DCCA PSI state outline hi.VIII Escrow Process and Closing Statements plus official HAR 16-99-4 and HRS chapters 247, 449, 502, and 667; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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