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Hawaii

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Hawaii — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-10.

Structural note (read first). Hawaii is unusual. Real-property taxation was transferred from the State to the four counties effective July 1, 1981, and the old State real-property-tax statute, HRS Chapter 246 (“Real Property Tax Law”), was REPEALED by L 2016, c 52, §7 (confirmed by the official chapter PDF, which now reads only “REPEALED. L 2016, c 52, §7”). The operative tax-sale law therefore lives in county ordinances that re-enact the old HRS 246 language almost verbatim — e.g., the Revised Ordinances of Honolulu (ROH) Chapter 8, Article 5 (§ 8-5.2 foreclosure without suit; § 8-5.6 tax deed/redemption; § 8-5.9 disposition of surplus moneys). A parallel State framework for tax-lien foreclosure of State-administered taxes survives at HRS Chapter 231, §§ 231-62 to 231-67 (231-63 foreclosure without suit; 231-67 tax deed/redemption), whose text mirrors the repealed 246 sections. Throughout this page, the substantive rule (1-year redemption, 12% interest, surplus to the former owner) is cited to these surviving/mirrored sources and to the counties’ own published procedures.

0. Identity & Classification

  • Recording unit: county (count: 4 — Honolulu (City & County), Hawaiʻi, Maui, Kauaʻi; Kalawao is administered by Maui/State). Tax administration is county-level since 1981.
  • Tax sale type: tax deed (redeemable deed). The county sells the property outright at public auction to satisfy the lien; the former owner then has a statutory post-sale redemption window. Hawaii is not a lien-certificate state. Maui County Tax Sale FAQ
  • Tax foreclosure process: administrative / non-judicial — “foreclosure without suit” by the county tax director (ROH § 8-5.2; cf. repealed HRS 246-56 / mirrored HRS 231-63).
  • Mortgage foreclosure process: both judicial (HRS 667 Part IA, § 667-1.5) and non-judicial / power-of-sale (HRS 667 Part II, §§ 667-21 to 667-42). HRS Ch. 667 (2017 chapter PDF)
  • Selling authority: county finance director / tax collector (real-property tax sale); commissioner (judicial mortgage foreclosure) or mortgagee/trustee (non-judicial power-of-sale).
  • Statutory home: Tax sale — county ordinances (Honolulu ROH Ch. 8, Art. 5), with surviving State analog HRS Ch. 231 §§ 231-62 to 231-67. Mortgage — HRS Ch. 667. — HRS 231-67 (Justia 2024)
  • Tyler v. Hennepin compliance: compliant — see tyler-v-hennepin-county. Hawaii law has long required the foreclosing officer to return the surplus after the tax debt and costs to the person entitled (repealed HRS 246-63 / ROH § 8-5.9 “Disposition of surplus moneys”; mortgage analog HRS 667-31(b)). The State does not keep the equity, so Hawaii’s scheme does not embody the surplus-retention defect condemned in Tyler.

1. Tax Sale Mechanics

  • What is sold: the fee (deed) to the delinquent parcel, subject to the one-year redemption right. Maui FAQ
  • Bidding method: highest-bid (premium) cash auction. “Sold by the director at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses” (ROH § 8-5.2; repealed HRS 246-56). Search-confirmed text: WebSearch quote of ROH 8-5.2 / HRS 246-56
  • Interest or penalty (redemption): 12% per year on the redemption amount (repealed HRS 246-60; mirrored HRS 231-67; confirmed by the county FAQs). Maui FAQ
  • Minimum bid composition (“upset price”): delinquent real-property taxes + accrued penalty and interest to the auction date + all costs of sale. Maui FAQ
  • Sale frequency / typical month: as needed by each county (a parcel must be sold once a tax lien has existed for three years — ROH § 8-5.2). No fixed statewide calendar; counties schedule periodically. County-level fact.
  • Venue: in-person public auction “at any public place proper for sales on execution”; counties publish location in the foreclosure notice. WebSearch quote of ROH 8-5.2
  • Platform vendors: none statewide (in-person). County-level fact.
  • Registration & deposit: active bidders must register and bring full payment in cashier’s checks drawn on U.S. banks (no cash/personal checks/cards); payment due at the sale. Maui FAQ
  • Subsequent taxes (“subs”): not applicable — Hawaii sells a deed, not a certificate, so there is no certificate-holder “sub” mechanic. The purchaser takes subject only to the redemption right.

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: the owner may stop the sale at any time before it occurs by paying the delinquent taxes, penalties, interest, and costs (lien is discharged on payment). Maui FAQ
  • Post-sale period: one (1) year — runs from the date of sale, or, if the tax deed is not recorded within 60 days after the sale, from the date the deed is recorded (whichever is later). Repealed HRS 246-60; mirrored HRS 231-67. HRS 231-67 (Justia 2024) · Maui FAQ
  • Who may redeem: the taxpayer / former owner (and, by general practice, persons holding an interest derived from the owner). The statute frames the right as the “taxpayer” redeeming. HRS 231-67 (Justia 2024)
  • Redemption amount formula: amount paid by the purchaser at the sale + all costs and expenses the purchaser was required to pay (including the deed recording fee) + 12% per year interest on that amount. (Repealed HRS 246-60 / HRS 231-67.) HRS 231-67 (Justia 2024)
  • Premium to certificate holder: N/A (deed state, no certificate).
  • Procedure: redemption is paid directly to the purchaser, not the county — “The County is not involved in the redemption process.” Maui FAQ
  • Extinguishment: the right expires at the end of the one-year window; the tax deed then becomes absolute and (per repealed HRS 246-62 / its ordinance analog) is prima-facie evidence of good title.
  • Special tolling: see scra-protections, bankruptcy-automatic-stay. Statute-specific tolling for minors/incompetents is not confirmed for the current county ordinances — see module 11.

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: priority waterfall, then the former owner. The repealed-but- re-enacted “Disposition of surplus moneys” provision (HRS 246-63 / ROH § 8-5.9) directs the officer to pay, from the surplus, all taxes (with interest and penalties) of every nature, and the cost of any record search needed to identify who is entitled to the balance. WebSearch quote of HRS 246-63
  • Claim waterfall: (1) delinquent taxes, penalties, interest; (2) the officer’s costs and expenses of sale and record search; (3) other lienholders of record; (4) the former owner / person entitled to the balance. WebSearch quote of HRS 246-63
  • Filing venue: with the county finance department / tax collector that conducted the sale; if the officer is in doubt as to who is entitled, the officer may refuse to distribute and any claimant may sue the officer in the Circuit Court of the circuit where the property is located. WebSearch quote of HRS 246-63
  • Claim deadline: no fixed statutory deadline in the surplus provision itself; unclaimed surplus held by a county becomes abandoned property that is ultimately reportable to the State Unclaimed Property program (HRS Ch. 523A). Exact county holding period before remittance is a county-level fact — see module 11.
  • Escheat: unclaimed surplus is not permanently forfeited to the State — it is reported/remitted to the State unclaimed-property administrator (Dept. of Budget & Finance) and remains reclaimable by the owner indefinitely under HRS Ch. 523A. Hawaii Unclaimed Property Program
  • Documentation required: proof of identity and ownership/interest at the time of sale; the officer may run a record search to confirm entitlement (HRS 246-63 / ROH § 8-5.9). Precise county forms are a county-level fact.
  • Third-party recovery (surplus-recovery agents):
    • fee_cap_pct: 25% — but only once funds reach the State unclaimed- property stage: HRS 523A-25 makes a locate/recover agreement unenforceable to the extent it exceeds 25% of the property’s total value (enforceable only by the owner above that). There is no tax-surplus-specific fee cap governing the window before remittance to the State. See module 11. HRS 523A-25 (FindLaw)
    • licensing_required: no surplus-recovery-specific license confirmed.
    • assignment_of_claim_allowed: not confirmed for tax surplus — see module 11.
    • cooling_off_period: under HRS 523A-25 a locate agreement is void if entered into during the period from when the property is presumed abandoned until 24 months after it is delivered to the State administrator. HRS 523A-25 (FindLaw)
    • contract_disclosure_rules: HRS 523A-25 — agreement must be in writing, signed by the apparent owner, clearly describe the property and services, and state the value before and after the fee. HRS 523A-25 (FindLaw)
    • prohibited_practices: agreements outside the written/disclosure form, or entered during the void window, are unenforceable (HRS 523A-25).
    • citation: HRS 523A-25 (unclaimed-property locators); HRS 246-63 / ROH 8-5.9 (county-stage surplus distribution).
  • Notice to former owner required? Yes — pre-sale notice is mailed to the owner’s last known address and posted/published (ROH § 8-5.2; see module 6). The surplus statute additionally funds a record search to find who is entitled.

▸ For Investors / Operators — A Hawaii tax sale conveys a deed subject to a one-year redemption right (§2/2b — redemption is paid directly to the purchaser at the bid price + costs + 12%/yr, and the County is not involved). Surplus from the sale flows through the HRS 246-63 / ROH § 8-5.9 waterfall (taxes → officer’s costs → lienholders of record → former owner). Before committing capital, weigh the redemption window and the deed’s “as is / no warranty” character, the path to marketable/insurable title (§5b — quiet title under HRS Ch. 669, and a separate Land Court petition under HRS Ch. 501 for Torrens-registered parcels), and which liens survive (§7b — senior encumbrances recorded before the tax lien, the IRS § 7425 120-day redemption, and CERCLA liability that runs with the land).

▸ For Former Owners — When a Hawaii tax sale produces more than the taxes, penalties, interest, and the officer’s costs, the residual surplus belongs to the former owner (HRS 246-63 / ROH § 8-5.9). The claim is filed with the county finance department / tax collector that conducted the sale; if the officer is in doubt as to entitlement, any claimant may sue the officer in the Circuit Court of the circuit where the property is located (HRS § 231-70 interpleader). Unclaimed surplus is reported to the State Unclaimed Property program (HRS Ch. 523A), where it remains reclaimable by the owner indefinitely.

4. Mortgage Foreclosure

  • Process: both.
    • Judicial — circuit court assesses the amount due and orders foreclosure; a court-appointed commissioner sells; the court confirms the sale. HRS § 667-1.5. HRS 667 PDF
    • Non-judicial (power of sale) — HRS Part II, §§ 667-21 to 667-42 (the modern process enacted/overhauled by Act 48 (2011) and Act 182 (2012); old § 667-5 was repealed by L 2012, c 182, §50). HRS 667 PDF
  • Timeline: non-judicial requires a recorded notice of default and intention to foreclose (§ 667-22), which must give the mortgagor a cure deadline of at least 60 days after service of the notice. The public sale may not be held until the later of (a) at least 60 days after the notice of sale is distributed under § 667-27 or (b) at least 14 days after the third consecutive weekly publication of the sale notice (§ 667-25). Three consecutive weekly newspaper publications are required (§ 667-27). The successful bidder makes a ≥10% non-refundable downpayment at the sale and must complete the purchase within 45 days or forfeit the downpayment (§§ 667-29, 667-30). HRS §§ 667-22, 667-25, 667-27, 667-29, 667-30 — 2017 chapter PDF, data.capitol.hawaii.gov, retrieved 2026-06-10
  • Reinstatement / cure right: yes — the default may be cured up to three business days before the public sale by paying the full accelerated arrears plus the foreclosing mortgagee’s fees and costs; “There is no right to cure the default or any right of redemption after that time.” HRS § 667-28(d). HRS 667 PDF
  • Redemption after sale: none — Hawaii has no statutory post-sale redemption for mortgage foreclosures (§ 667-28(d), above).
  • Deficiency judgment: allowed in judicial foreclosure (court may enter a deficiency on confirmation). In non-judicial foreclosure of residential property, a deficiency judgment against an owner-occupant is PROHIBITED unless the debt is secured by other collateral. HRS § 667-38. HRS 667 PDF
  • Surplus distribution: liens paid in order of priority (not pro rata); “Any remaining surplus after payment in full of all valid lien creditors shall be distributed to the mortgagor.” HRS § 667-31(b); see also § 667-10 (remainder “paid over to the owner of the mortgaged property”) and § 667-3. HRS 667 PDF
  • Sale officer: commissioner (judicial) or foreclosing mortgagee / trustee (non-judicial power of sale).

5. Sale Procedure Playbooks

  • Treasurer / tax-collector (“foreclosure without suit”) sale → see treasurer-sale:
    1. Tax lien arises; once any lien has existed three years, the county must sell (ROH § 8-5.2).
    2. County mails notice to the owner’s last known address (≥45 days before sale, per repealed HRS 246-56 text) and posts in ≥3 conspicuous places (one on the land if improved).
    3. County publishes the foreclosure-sale notice once a week for 4 successive weeks in a newspaper of general circulation before the sale (ROH § 8-5.2). WebSearch quote of ROH 8-5.2
    4. Public auction to the highest cash bidder at the upset price (taxes + penalty + interest + costs). Maui FAQ
    5. Tax deed executed and recorded within 60 days of sale (repealed HRS 246-60).
    6. One-year redemption runs (module 2); officer distributes surplus under ROH § 8-5.9 / HRS 246-63 (module 3).
  • Sheriff / commissioner (mortgage) sale → see sheriff-sale: judicial sale by court-appointed commissioner, subject to court confirmation; non-judicial power-of-sale auction by the mortgagee under HRS 667 Part II.
  • Notice requirements: tax sale — 4 weeks’ publication + mailing + posting (ROH § 8-5.2 / repealed HRS 246-56, -58). Mortgage — recorded notice of default + statutory publication (HRS § 667-22 et seq.).
  • Upset bid / confirmation: judicial mortgage sales require court confirmation; tax sales and non-judicial mortgage sales have no upset-bid re-opening mechanism (the high cash bid governs, subject to redemption for tax sales).
  • Payment terms: tax sale — full cashier’s-check payment at the auction. Mortgage non-judicial — ≥10% down, close within 45 days (§ 667-29/30). Maui FAQ
  • Deed issued: tax deed (quitclaim-grade, “as is,” no warranty of title), recorded within 60 days; mortgage commissioner’s deed after confirmation. Maui FAQ

6. Due Process & Notice → see due-process-notice

  • Standard: notice “reasonably calculated” to reach interested parties (mullane-v-central-hanover); mailed (actual) notice to owners and recorded lienholders (mennonite-v-adams); additional steps when mail is returned (jones-v-flowers). Hawaii’s tax-sale statute requires both mailed notice to the owner’s last known address and published + posted notice.
  • Required attempts: (1) mail to last known address; (2) publish weekly for 4 weeks; (3) post in ≥3 conspicuous places, one on the land if improved (repealed HRS 246-56 / ROH § 8-5.2). WebSearch quote of ROH 8-5.2
  • Consequence of defective notice: in mortgage foreclosure the Hawaiʻi Supreme Court treats a non-compliant non-judicial sale as void / voidable at the mortgagor’s election (subject to the innocent-purchaser-for-value rule) — see mount-v-apao, santiago-v-tanaka. By analogy, a tax sale lacking statutory notice is challengeable (voidable), though a clean Hawaii tax-sale-notice case is flagged in module 11.
  • Leading cases: mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers, tyler-v-hennepin-county, mount-v-apao, santiago-v-tanaka.

7. Title & Marketability

  • Deed warranty level: none — counties convey “as is” with no warranty of title; buyers are told to consult their own attorney about liens/title. Maui FAQ
  • Marketable immediately? No — title is clouded during the one-year redemption window and by the absence of warranty.
  • Quiet title required? Commonly yes — a quiet-title action (and/or Land Court proceeding for registered/Torrens land) is the standard way to clear the tax deed after redemption lapses. (Hawaii has a dual recording system: regular system + Land Court/Torrens registered land.)
  • SOL to challenge deed: 20 years under HRS § 657-31 (“No person shall commence an action to recover possession of any lands, or make any entry thereon, unless within twenty years after the right to bring the action first accrued”) — the general real-property limitations period. The tax deed is prima-facie evidence of statutory compliance under HRS § 231-69 (shifting the burden to the challenger), but a challenger may bring a quiet-title or ejectment action within the 20-year window. No shorter tax-deed-specific repose statute has been identified for the current county ordinances. [HRS § 657-31 (20-year real property SOL), text confirmed via Justia search results 2026-06-10; HRS § 231-69, confirmed via files.hawaii.gov 2026-06-02]
  • Title insurance availability: generally unavailable until the redemption period closes and (often) a quiet-title decree issues. Practitioner-level / flagged.
  • Common defects: outstanding redemption right; defective/returned notice; Land Court (registered land) parcels requiring separate clearing; junior liens not properly noticed; heirs/kuleana and Native Hawaiian land interests.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
mount-v-apao (139 Haw. 167, 384 P.3d 1268)2016sale_procedure, due_processA lender’s failure to disclose the payoff/cure amount on request rendered the non-judicial foreclosure voidable at the borrower’s election; if the buyers were innocent purchasers for value, the remedy is damages, not undoing the sale.CourtListener · HI Judiciary PDF
santiago-v-tanaka (137 Haw. 137, 366 P.3d 612)2016sale_procedure, due_processA wrongful non-judicial foreclosure is invalid and voidable at the mortgagor’s election (regaining title), except where an innocent purchaser for value has taken title, in which case the remedy is out-of-pocket damages.Justia
tyler-v-hennepin-county (598 U.S. 631)2023surplusKeeping a former owner’s surplus equity beyond the tax debt is an unconstitutional taking. Hawaii already returns surplus to the owner (HRS 246-63/ROH 8-5.9), so its scheme is consistent with Tyler.HI Ch.246-63 text
mennonite-v-adams (462 U.S. 791)1983due_processA mortgagee of record is entitled to actual (mailed) notice before a tax sale; publication alone is insufficient.Maui FAQ (notice practice)
jones-v-flowers (547 U.S. 220)2006due_process, redemptionWhen mailed tax-sale notice is returned undelivered, the government must take additional reasonable steps to notify the owner.HI Ch.246-56 notice text

Topic-tag coverage: surplus (Tyler), due_process (Mennonite, Jones, Mount, Santiago), sale_procedure (Mount, Santiago), redemption (Jones, plus the statutory one-year right). A Hawaii-specific tax-deed redemption/notice case is still sought — see module 11 (honest gap, not fabricated).

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — a Chapter 7/13 filing stays a tax or mortgage sale; the redemption clock is tolled per 11 U.S.C. §§ 362, 108(b). State-specific interaction flagged.
  • federal-tax-lien-redemption — the IRS holds a 120-day post-sale redemption right under 26 U.S.C. § 7425 when a federal tax lien is junior; applies in Hawaii.
  • heirs-property — Hawaii kuleana lands and Native Hawaiian/ahupuaʻa interests, and undivided heirs’ interests, complicate notice and title; quiet-title actions involving kuleana receive special statutory treatment. Flagged for a precise citation.
  • scra-protections — Servicemembers Civil Relief Act protections (50 U.S.C. § 3953) apply to foreclosures of obligations incurred before active duty.
  • hoa-super-priority — condominium/planned-community association liens have special non-judicial-foreclosure handling under HRS 667 Part II and §§ 667-5.5, 667-21.5; association deficiency rights differ. Flagged for detail.
  • land-court-registered-land — Hawaii’s Torrens / Land Court system means tax/foreclosure deeds on registered land must be cleared through Land Court procedures (HRS Ch. 501). Distinctive to Hawaii.
  • void-vs-voidable — Hawaii treats wrongful non-judicial foreclosures as voidable subject to the innocent-purchaser-for-value rule (mount-v-apao, santiago-v-tanaka).

10. Operations

2b. Redemption Advanced

Assignability of the statutory redemption right. Hawaii’s tax-sale redemption statute (HRS § 231-67; county-ordinance analog ROH § 8-5.6) frames the right as belonging to “the taxpayer” and says redemption is “by payment to the purchaser.” Neither the surviving State statute nor any county FAQ explicitly grants or prohibits transfer of the redemption right to a third party. No Hawaii case has been located that addresses the assignability of a post-tax-sale statutory redemption right. Because Hawaii is a deed state (not a lien-certificate state) there is no “certificate” that a third party would typically hold — the redemption right is the former owner’s personal window to buy back property from the deed-purchaser.

  • assignable: needs_verification — statute silent; likely treated under general property-right assignment principles (HRS Ch. 490, common law), which would permit assignment absent an express prohibition, but no primary authority confirmed.
  • restrictions: needs_verification — no explicit restriction identified; general creditor and mortgagee interests may derive rights from owner.
  • statute_or_case: HRS § 231-67 (text retrieved from files.hawaii.gov/tax/legal/hrs/hrs_231.pdf, 2026-06-02); no case law on point confirmed.
  • purchase_mechanism: needs_verification — if permitted, likely by written assignment instrument recorded with the Bureau of Conveyances; redemption payment still goes directly to the deed-purchaser.

Equitable redemption. Hawaii circuit courts apply equitable-redemption doctrine (the right to pay the debt and stop a sale before the gavel falls) as distinct from the statutory post-sale right. The tax-sale notice warning (HRS § 231-65) explicitly states that the owner may cure “unless the tax … is paid before the time of sale” — which mirrors the equitable-redemption concept. For mortgage foreclosures, the Hawaiʻi Supreme Court has acknowledged equitable relief pre-sale (Santiago v. Tanaka, 137 Haw. 137 (2016)). HRS Ch. 669 (Quieting Title) also preserves equitable remedies.

  • distinct_from_statutory: yes — equitable (pre-sale) and statutory (post-sale one-year) rights are separate.
  • available_pre_sale_only: yes for the equitable variant; the statutory one-year right is exclusively post-sale.
  • notes: No Hawaii case expressly labels the pre-payment right “equitable redemption” for tax sales, but the statutory warning language and the mortgage-foreclosure case law support the distinction.

Installment redemption.

  • permitted: needs_verification — HRS § 231-67 and county FAQs describe a lump-sum payment directly to the purchaser; no installment mechanism has been identified. Lump-sum appears to be the only mechanism.
  • statute: HRS § 231-67.

Assignment of tax deed by purchaser during redemption period. Because Hawaii sells a deed (not a lien certificate), the purchaser holds a deed subject to defeasance during the one-year redemption window. The deed is recordable and conveyable under general property law. Nothing in HRS § 231-67 or identified county ordinances restricts the purchaser from assigning or conveying the deed mid-redemption-period; a buyer of the deed takes subject to the same one-year redemption right. The former owner’s right runs with the land/deed and is not extinguished by a conveyance to a subsequent purchaser.

  • permitted: yes (by general real-property conveyance principles) — needs_verification for any county-ordinance restriction.
  • restrictions: assignee takes subject to the existing redemption right; redemption amount still runs from the original purchase price plus costs, not the resale price.
  • statute: HRS § 231-67; HRS § 502 (Bureau of Conveyances recording); no express prohibition found.

3b. Surplus Advanced

Claim assignability. The primary surplus statute, HRS § 231-70 (State analog; county mirror in ROH § 8-5.9), directs the officer to pay the surplus to “the person thereto entitled.” Neither the State statute nor any county FAQ explicitly authorizes or prohibits a full outright assignment of the surplus claim to a third-party purchaser. LienSuite’s 2026 state-by-state guide marks Hawaii assignment as “Not Allowed,” but does not cite a specific statute; this likely reflects county-level practice or the HRS 523A-25 constraint.

  • full_assignment_permitted: needs_verification — no primary statute authorizes it; LienSuite secondary source characterizes it as “Not Allowed”; county practice appears to require the owner or heir to claim directly.
  • assignment_vs_fee_agreement: The distinction operative in Hawaii is between (a) a recovery-agent fee agreement (contingency-fee arrangement, permitted subject to the 25% cap once funds reach the State unclaimed-property stage under HRS § 523A-25) and (b) an outright sale of the claim to a third party (not confirmed as permitted at the county-held stage).
  • fee_cap_applies_to_assignments: if assignment were treated as a “locate agreement,” HRS § 523A-25’s 25%-of-property-value cap and 24-month void window would apply. [HRS 523A-25 text, FindLaw, retrieved 2026-06-01]
  • statute: HRS § 231-70 (surplus); HRS § 523A-25 (unclaimed-property locate agreements).

Statute of limitations on surplus claims.

  • period: No fixed statutory deadline is stated in HRS § 231-70 or the repealed HRS § 246-63 text for the county-held surplus window. LienSuite’s guide states “1 year” for Hawaii, but no primary statute was identified that sets this one-year limit at the county level. Once unclaimed surplus is remitted to the State Unclaimed Property Program (HRS Ch. 523A), the right to claim is indefinite — the State holds funds perpetually as custodian with no ultimate escheat. [Hawaii Unclaimed Property FAQ, budget.hawaii.gov, retrieved 2026-06-01]
  • trigger: needs_verification — no primary statute sets a county-holding-period trigger. The HRS Ch. 523A trigger is “presumed abandoned” (typically 5 years of no owner contact under § 523A-2), not tied to the tax-sale date.
  • citation: HRS § 231-70; HRS Ch. 523A; LienSuite secondary source (2026) characterizes deadline as 1 year (needs_verification against primary county ordinance).

Competing claimant procedure. HRS § 231-70(a) and (b) provide a clear mechanism: if the distributing officer is in doubt as to who is entitled, the officer may refuse to pay and any claimant may sue the officer in the circuit court in the circuit where the property was located. The officer may require the claimants to interplead; the officer must name all known claimants and join unknown claimants by published notice under HRS §§ 634-23 to 634-27. Guardians must be appointed for minors and legally disabled persons. [HRS § 231-70(a)–(b), retrieved from files.hawaii.gov 2026-06-02]

  • filing_race: no — interpleader / court determination governs, not a first-to-file race.
  • interpleader_used: yes — the statute expressly authorizes the officer to require interpleader.
  • priority_rules: The waterfall is (1) taxes/penalties/interest, (2) officer’s costs, (3) lienholders in priority order, (4) former owner / person entitled to balance (HRS § 231-70(a); § 231-62).
  • citation: HRS §§ 231-62, 231-70 (retrieved 2026-06-02).

Deceased owner procedure. For surplus held at the county stage, no specific provision addresses deceased former owners; the officer distributes to the “person thereto entitled” under general succession principles. For surplus that has reached the State Unclaimed Property Program, the Hawaii Dept. of Budget & Finance publishes specific “Deceased Owner Claim Instructions” (retrieved 2026-06-02 from budget.hawaii.gov):

  • If estate value in Hawaii does not exceed $100,000: no formal probate required — an Affidavit for Collection of Personal Property of the Decedent (HRS § 560:3-1201 small-estate affidavit) plus death certificate and proof of heirship (birth/marriage certificates) suffices.
  • If estate exceeds $100,000 or has Trust/Probate documents: present trust or probate letters showing authority.
  • probate_required_first: no (for estates ≤ $100,000, small-estate affidavit suffices); yes for larger estates.
  • personal_rep_has_standing: yes.
  • direct_heir_claim_permitted: yes (via small-estate affidavit for estates ≤ $100,000).
  • notes: This procedure applies to funds held by the State Unclaimed Property Program. County-level procedures for recently sold surplus (before remittance) are needs_verification.

Fraudulent conveyance exposure. If a former owner assigns a surplus claim to a third party while insolvent, the assignment may be voidable under Hawaii’s Uniform Fraudulent Transfer Act, HRS Chapter 651C. Under § 651C-4, a transfer is fraudulent as to present and future creditors if made with actual intent to hinder, delay, or defraud, or without receiving reasonably equivalent value while insolvent. Under § 651C-5, a transfer is fraudulent as to existing creditors if made without reasonably equivalent value while the debtor was insolvent. [HRS §§ 651C-4, 651C-5, Justia 2025, retrieved 2026-06-02]

  • assignment_voidable_by_creditors: yes, if conditions of § 651C-4 or § 651C-5 are met.
  • applicable_statute: HRS Chapter 651C (Uniform Fraudulent Transfer Act — note: Hawaii has not yet adopted the 2014 Uniform Voidable Transactions Act rename; the chapter title remains “Uniform Fraudulent Transfer Act” as of 2025 compilation).
  • notes: A recovery agent taking an assignment from an insolvent former owner for less than reasonably equivalent value faces potential voidance by creditors; this risk counsels using a fee agreement rather than an outright purchase of the claim.

Surplus claimant notice. Under HRS § 231-70(b), the court proceeding triggered by competing claims requires personal service on all known claimants (including guardians for disabled persons) and publication notice for unknown or out-of-state claimants.

  • court_must_notify_lienholders: yes, via the interpleader mechanism.
  • method: personal service on known parties; published notice (≥ 1 newspaper in the circuit) for unknown/out-of-state claimants.
  • timeline: needs_verification — general service/publication timelines apply; no specific surplus-proceeding timeline found.
  • citation: HRS § 231-70(b) (retrieved 2026-06-02).

5b. Title Advanced

Quiet title action. Hawaii’s quiet-title statute is HRS Chapter 669. HRS § 669-1 provides that “actions may be brought by any person against another person who claims, or who may claim adversely … an estate or interest in real property, for the purpose of determining the adverse claim.” The statute expressly preserves equitable remedies alongside the statutory quiet-title remedy. [HRS § 669-1, capitol.hawaii.gov, retrieved 2026-06-02]

  • when_required: Recommended in virtually all tax-deed cases; required whenever title insurance is sought or a lender is involved, because title insurers will not issue a policy on a tax deed until a quiet-title decree (or sufficient deed seasoning) is obtained. Registered (Land Court) land requires a separate clearing petition in the Land Court (HRS Ch. 501).
  • action_type: judicial — circuit court for regular-system land; Land Court for registered land.
  • court_with_jurisdiction: Circuit Court of the judicial circuit where the property is situated (HRS § 669-1); Land Court (a court of limited statutory jurisdiction under HRS Ch. 501) for Torrens-registered parcels.
  • typical_timeline_months: “3–6 months” for uncontested circuit-court quiet title; add 2–3 months if publication service is required; Land Court proceedings can run 6–18+ months. (Practitioner estimate from search results — needs_verification by Hawaii real estate counsel.)
  • typical_cost_range: “$1,500–$5,000” for uncontested; contested cases exceed $10,000 plus attorney fees. (Practitioner estimate — needs_verification.)
  • cures_all_pre_sale_defects: yes, for regular-system land — a final circuit-court quiet-title decree binds all named and constructively noticed parties. Land Court registration after clearing provides the strongest possible title.
  • citation: HRS § 669-1; HRS Ch. 501 (Land Court); HRS § 231-69 (tax deed is prima facie evidence of regularity, shifting burden to challenger).

Deed seasoning.

  • insurers_require_seasoning: yes — Hawaii title insurers routinely decline to insure a tax deed immediately because (a) the one-year redemption window is outstanding, and (b) the risk of a defective-notice challenge exists even after redemption lapses.
  • typical_years: needs_verification — after the one-year redemption expires, many underwriters require a completed quiet-title action rather than mere passage of time; a two- to three-year seasoning without quiet title is sometimes accepted but is underwriter-specific and not confirmed by primary source.
  • rationale: Tax deeds convey with no warranty of title; the county FAQ expressly states “as is.” The deed-purchaser takes the risk of all title defects, including notice defects that could render the sale voidable under Santiago v. Tanaka / Mount v. Apao principles.

Title insurance.

  • immediate_availability: no — not available during the one-year redemption period; generally available only after the redemption window closes and (typically) a quiet-title decree issues.
  • conditions_for_immediate: none identified; Hawaii’s tax-deed “as is/no warranty” character and the redemption right preclude immediate issuance.
  • insurers_known_to_write: needs_verification — major underwriters (First American, Old Republic, Fidelity/Chicago Title, Stewart) operate in Hawaii; their specific Hawaii tax-deed policies are not confirmed by primary source.
  • quitclaim_or_special_warranty_only: yes — the tax deed itself is quitclaim/no-warranty; title insurance obtained after quiet title would be an owner’s policy on the quieted title.

Marketable Title Act.

  • exists: no confirmed Marketable Title Act in Hawaii. Hawaii has no statutory 40- or 30-year lookback marketable-title statute comparable to Florida’s or Michigan’s. Title searches in Hawaii customarily run back to the original land grant or government patent (or Land Court registration date for Torrens land). (Secondary-source conclusion from practitioner materials — needs_verification by primary statute search.)
  • lookback_years: null — no marketable-title statute identified.
  • statute: none found.

Judicial confirmation before deed issues.

  • required_before_deed_issues: no — for tax sales the county issues the deed directly after the auction (to be recorded within 60 days); no court confirmation step. Judicial confirmation is required only in judicial mortgage foreclosures (HRS § 667-1.5 et seq.), not for tax-sale deeds.
  • tribunal: N/A for tax sales; Circuit Court for judicial mortgage-foreclosure confirmation.
  • timeline_days: N/A for tax sales.
  • citation: HRS § 231-67 (deed recorded within 60 days); HRS § 667-1.5 (judicial mortgage confirmation).

Chain-of-title cure depth.

  • depth: Tax deed extinguishes junior liens and claims arising after the tax-lien attachment, but not necessarily senior encumbrances or federal liens subject to the IRS 120-day redemption right (module 7b). Under HRS § 231-69, the tax deed is prima facie evidence of compliance with all statutory requirements, shifting the burden of proof to a challenger. A successful quiet-title action cures all pre-sale defects as to parties properly served.
  • notes: Registered (Land Court / Torrens) land requires separate treatment under HRS Ch. 501; a tax deed on a Torrens parcel does not automatically update the certificate of title — a Land Court petition is required to register the new ownership.

5c. TRO & Injunctive Relief

Recognized grounds to seek a TRO or preliminary injunction to halt a Hawaii tax or mortgage foreclosure sale:

  1. Notice defect — failure to mail, publish, or post as required by HRS § 231-63 / ROH § 8-5.2 (tax sale) or HRS § 667-22 (mortgage non-judicial).
  2. Payment dispute — taxpayer asserts the taxes were paid or assessed in error.
  3. Constitutional due-process violation — inadequate notice under Mullane, Jones v. Flowers, Mennonite standards.
  4. SCRA protection — active-duty servicemember whose foreclosure rights are protected under 50 U.S.C. § 3953.
  5. Bankruptcy automatic stay — 11 U.S.C. § 362 automatically halts foreclosure; a TRO in state court reinforces the stay if the sale is imminent.
  6. Wrongful acceleration / lender breach — in mortgage foreclosure, the lender’s failure to disclose the cure amount (Mount v. Apao) or other procedural failure.
  7. Homestead / kuleana interest — unique Hawaii constitutional and statutory protections for Native Hawaiian land interests may provide equitable grounds.

Legal standard. Hawaii circuit courts apply a four-factor test for a preliminary injunction (consistent with HRCP Rule 65(a) and the Winter standard used in federal courts within the Ninth Circuit): (1) likelihood of success on the merits; (2) likelihood of irreparable harm absent relief; (3) balance of equities tips in the movant’s favor; (4) the injunction is in the public interest. For TROs issued ex parte under HRCP Rule 65(b), the movant must show immediate irreparable harm and explain why notice to the other side was not given. [HRCP Rule 65, courts.state.hi.us, retrieved 2026-06-02; see also HRS § 127A-27 (three-judge panel required for certain injunctions against government-agency enforcement).]

Court with jurisdiction: Circuit Court of the judicial circuit where the property is located (HRS § 603-21.5; HRCP Rule 65). In mortgage foreclosure the same court handling the foreclosure action is the appropriate forum.

Bond requirement. HRCP Rule 65(c) requires the movant to post security “in such sum as the court deems proper, for the payment of such costs and damages as may be incurred or suffered by any party who is found to have been wrongfully enjoined or restrained.” Courts may waive the bond for indigent plaintiffs with meritorious claims. Typical bond amounts in Hawaii foreclosure TRO matters are not established by rule; they track the ongoing harm to the foreclosing party (lost interest accrual, carrying costs) and are set by the presiding judge. (needs_verification — no Hawaii case specifically stating a typical range.)

Emergency timeline. An ex parte TRO under HRCP Rule 65(b) can be obtained on the day of filing if the motion is properly supported by affidavit showing immediate irreparable harm. In practice, if the motion is filed with the circuit court well before the scheduled sale, relief can be obtained within 24–48 hours; filing on the day of the sale creates significant procedural risk of the sale proceeding before the order issues.

Effect on a completed sale. If the sale has already been completed (the gavel has fallen and the deed has been delivered) before the TRO issues, the Hawaii Supreme Court’s precedent in Mount v. Apao and Santiago v. Tanaka controls: a wrongful sale is voidable (not automatically void) at the aggrieved party’s election, but if an innocent purchaser for value has already taken title, the remedy is damages, not rescission of the deed. Courts retain discretion to unwind the sale if no innocent purchaser has intervened, but that remedy becomes unavailable once the deed passes to a bona fide purchaser for value.

Non-judicial foreclosure notes. Hawaii’s mortgage non-judicial (power-of-sale) process under HRS 667 Part II does not include a pre-sale judicial confirmation step, which means a TRO is the only mechanism to halt the sale once the notice of default is recorded. The three-business-day cure deadline (§ 667-28(d)) means TRO practice must be aggressive — the window to seek relief closes quickly. After sale, the innocent-purchaser-for-value rule significantly limits the remedy.

7b. Lien Survival & Purchaser Exposure

IRS 120-day redemption right.

  • applies: yes — when the United States holds a federal tax lien against the former owner and the county’s tax sale was conducted as a “nonjudicial sale” under 26 U.S.C. § 7425(b), the IRS has a 120-day right to redeem the property after the sale. Hawaii’s tax sale is a nonjudicial administrative sale, so § 7425(d) applies. The IRS must receive proper written notice of the pending sale pursuant to § 7425(b) and Treasury Reg. § 301.7425-1. [26 U.S.C. § 7425(d); see also federal-tax-lien-redemption]
  • procedure: The IRS pays the purchaser the amount paid at the sale plus interest at the Federal rate; the IRS then holds or sells the property.
  • citation: 26 U.S.C. §§ 7425(b), 7425(d); 26 C.F.R. § 301.7425-4 (retrieved via law.cornell.edu 2026-06-02).

HOA super-priority. Hawaii condominium associations have a limited super-priority lien under HRS § 514B-146(g): the association’s lien for up to six months of unpaid regular monthly common assessments takes priority over a first-recorded mortgage — but not over real-property tax liens lawfully imposed by governmental authority.

  • super_priority_exists: yes — for condominiums under HRS Ch. 514B (§ 514B-146(g)). Planned community associations under HRS Ch. 421J do NOT have an equivalent super-priority lien. Under HRS § 421J-10.5, the association’s lien priority follows the recordation date of the lien (or whatever the association documents specify), and the statute expressly prohibits any amendment to the documents from granting the association lien priority over a mortgage recorded before the amendment — meaning 421J planned communities have no priority over prior-recorded mortgages. [HRS § 421J-10.5, full text retrieved via sammade.github.io/aloha-io 2026-06-10; confirmed by search-result text from law.justia.com/codes/hawaii/title-23/chapter-421j/section-421j-10-5/]
  • statute: HRS § 514B-146(g) (condominiums — super-priority); HRS § 421J-10.5 (planned communities — recordation-date priority, no super-priority).
  • cap: six months of regular monthly common assessments (condominiums only; § 514B-146(g)). No cap applies to planned community associations (421J liens are not super-priority).
  • survives_tax_sale: no — the § 514B-146(g) lien statute expressly subordinates the association lien to “liens for real property taxes and assessments lawfully imposed by governmental authority against the unit.” A county tax sale extinguishes the HOA lien to the extent it is junior to the tax lien; however, the HOA’s claim for the six-month super-priority portion against the deed-purchaser may survive as a personal obligation depending on county and association practice. (needs_verification — Hawaii case law on this exact point not located.)
  • survives_mortgage_foreclosure: yes (condominiums) — the HOA’s six-month super-priority portion survives a senior-mortgage foreclosure because § 514B-146(g) gives it priority over the first mortgage to that extent. For planned communities (421J), the association lien is not super-priority and would be wiped out by a senior-mortgage foreclosure.
  • leading_cases: needs_verification — no specific Hawaii Supreme Court case on HOA super-priority survival of tax sale confirmed.

Environmental / CERCLA liens.

  • cercla_lien_survives_tax_sale: yes, as a matter of federal law — CERCLA liens (42 U.S.C. § 9607(l)) arise by operation of federal statute and the federal government’s ability to assert them is not extinguished by a state tax sale absent proper notice and redemption under 26 U.S.C. § 7425 / 28 U.S.C. § 2410. A CERCLA “windfall lien” (§ 9607(r)) attaches to property for which the government funded cleanup.
  • state_superfund_super_lien: not identified — Hawaii’s Environmental Response Law (HRS Ch. 128D) contains a cost-recovery provision (§ 128D-5) but no super-lien section comparable to CERCLA § 9607(l) has been located in the chapter’s table of contents or accessible text. The chapter’s sections (128D-1 through 128D-23; Part II 128D-31 through 128D-41) do not appear to include a real-property super-lien mechanism granting state environmental costs priority over private liens. Purchasers still face owner liability under HRS Ch. 128D as current owners, but the state does not appear to hold a recorded super-lien that would survive or precede a tax sale. (Honest gap — full section text of 128D-5 not retrieved to primary-source level; chapter index reviewed 2026-06-10 via sammade.github.io/aloha-io.)
  • notes: Tax-deed purchasers of contaminated property in Hawaii face potential CERCLA/HRS Ch. 128D liability as current owners. The “bona fide prospective purchaser” defense (CERCLA § 101(40)) requires all appropriate inquiry before purchase. Phase I environmental site assessment is essential for any commercial/industrial parcel.

Municipal code / blight liens.

  • survive_tax_sale: needs_verification — no Hawaii primary statute was located that addresses whether code-enforcement liens (nuisance abatement, blight remediation) survive a county tax sale. Under general lien-priority principles, a code lien recorded before the tax lien attachment could have priority; code liens recorded after the tax lien would typically be wiped out by the tax sale.
  • statute: needs_verification.
  • notes: Honolulu code-enforcement liens are governed by ROH Ch. 40; Hawaii County by County Code Ch. 25. County-level research required.

Mechanic liens.

  • survive_tax_sale_if_noticed: needs_verification — Hawaii mechanics’ lien statute is HRS Ch. 507 (Construction Liens); whether properly noticed mechanics’ liens survive a tax sale depends on recording priority and whether the lienholder received statutory notice of the tax sale. No primary authority confirming survival rule was retrieved.
  • notes: A mechanic’s lien recorded before the tax lien arose could be senior; one recorded after the tax-lien delinquency and sold-out would typically be extinguished by the tax deed under HRS § 231-69 (deed prima facie valid).

Junior mortgage exposure.

  • purchaser_takes_subject_to_senior: yes — a tax-deed purchaser at a tax sale conducted to satisfy a real-property tax lien takes free of junior liens (those that arose after the tax lien) but subject to any senior encumbrances (mortgages or liens recorded before the tax lien attached). The tax sale does not extinguish senior mortgages. Similarly, a mortgage-foreclosure sale extinguishes junior liens but not senior ones.
  • common_mistake_notes: Bidders sometimes assume a tax sale “clears” all mortgages; in fact only junior mortgages and liens are extinguished. A purchaser who fails to discover a senior mortgage will take subject to it and risk re-foreclosure.

Due diligence checklist for Hawaii tax-deed purchasers:

  1. IRS lien search (PACER / IRS lien registry) — triggers 120-day federal redemption right if present.
  2. UCC / judgment lien search (Bureau of Conveyances; state court docket).
  3. Phase I Environmental Site Assessment for commercial/industrial properties (CERCLA / HRS Ch. 128D exposure).
  4. HOA / condominium association status — confirm six-month super-priority assessment balance.
  5. Senior mortgage search — any mortgage recorded before the tax-lien delinquency date; senior mortgages survive the tax sale.
  6. Land Court / Torrens status check (Bureau of Conveyances) — registered land requires separate Land Court clearing.
  7. Kuleana / Native Hawaiian interest search — kuleana rights receive special statutory protection (HRS Ch. 669) and may not be extinguished by a tax sale.
  8. Municipal code-enforcement / blight lien search (county code-enforcement office).
  9. Mechanics’ lien search (Bureau of Conveyances, HRS Ch. 507).

10b. Purchaser Obligations During Redemption

Must the purchaser pay subsequent taxes during the one-year redemption period?

  • required: needs_verification — HRS § 231-67 and county FAQs are silent on this point. Hawaii’s county ordinances impose real-property taxes on the owner of record; once the tax deed is issued and recorded, the purchaser becomes the owner of record and is assessed for subsequent taxes. Failure to pay subsequent taxes could result in a new tax lien accruing against the purchaser. No provision requires the purchaser to pay subs in order to preserve the purchase (since Hawaii is a deed state, not a lien-certificate state with a “sub” mechanic).
  • consequence_of_failure: a new delinquency accrues against the purchaser; this does not affect the former owner’s redemption right.
  • citation: needs_verification — HRS § 231-67; county tax-assessment ordinances.

Must the purchaser send notice to the former owner before redemption expires?

  • required: no — HRS § 231-67 and county FAQs impose no obligation on the purchaser to notify the former owner that the redemption period is about to expire. The Maui County FAQ explicitly states “The County is not involved in the redemption process.” The statute creates no pre-expiration notice duty. This is consistent with the statutory rule that the redemption right runs for one year from the sale or deed-recording date (whichever is later) without any notice trigger.
  • form: N/A.
  • timing: N/A.
  • consequence_of_failure: N/A — no notice obligation to fail.
  • citation: HRS § 231-67; Maui County Tax Sale FAQ (retrieved 2026-06-01).

Owner’s right to remain in possession during redemption. The Maui County FAQ states: “any action against people remaining on the property after the Tax Sale is the responsibility of the purchaser. The County of Maui is not involved in any actions to remove persons or personal property.” This implies the county will not assist with eviction during the redemption period. The former owner’s right to remain is not expressly guaranteed by statute, but the redemption-right structure (the owner has one year to pay and reclaim the property) combined with the county’s hands-off approach means the former owner typically remains in possession, and the purchaser must pursue eviction through the courts if desired.

  • owner_may_remain: yes, by practice; no statutory guarantee confirmed.
  • purchaser_may_enter: needs_verification — no statutory right to enter confirmed during the redemption period; entry without court order or owner consent would risk trespass liability.
  • citation: Maui County Tax Sale FAQ (retrieved 2026-06-01); HRS § 231-67 (silent on possession during redemption period).

Costs the purchaser may collect upon redemption. Under HRS § 231-67, the redemption payment equals: purchase price + all costs and expenses the purchaser was required to pay (including deed recording fee) + 12% per year interest on that amount. The statute does not authorize the purchaser to collect for subsequent taxes paid, documented improvements made, or other expenditures beyond those listed.

  • bid_plus_interest: yes.
  • subsequent_taxes: no — not included in the statutory formula.
  • documented_improvements: no — not included.
  • other: deed-recording fee (expressly included in § 231-67).
  • citation: HRS § 231-67 (retrieved 2026-06-02 from files.hawaii.gov).

Property maintenance obligation.

  • required: needs_verification — HRS § 231-67 and county FAQs impose no express maintenance duty on the deed-purchaser during the redemption period. General nuisance and code-compliance obligations under county ordinances (e.g., ROH Ch. 40 for Honolulu) would apply to any property owner of record, so the purchaser (as deed-holder of record after recordation) must comply with property-maintenance codes.
  • standard: county code-compliance standard (nuisance, blight, building safety).
  • citation: county codes (ROH Ch. 40 Honolulu; similar for other counties) — needs_verification as to specific maintenance duties triggered by tax-deed ownership during the redemption window.

11b. Restrictions & Special Rules

Entity purchase restrictions. Hawaii’s tax-sale statutes (HRS § 231-63; county ordinances) do not restrict bidding to natural persons. Entities — including LLCs, corporations, and trusts — may bid. However:

  • Foreign corporations must have complied with Hawaii’s foreign-corporation qualification requirements under HRS Chapter 414, Part XVI (Foreign Corporations). The Maui County FAQ expressly states this requirement. [Maui County Tax Sale FAQ, retrieved 2026-06-01]
  • Foreign LLCs are similarly required to be qualified to do business in Hawaii under HRS Chapter 428 (Uniform Limited Liability Company Act). needs_verification — this requirement is inferred from the foreign-corporation rule and general Hawaii business-entity law; the FAQ mentions only HRS Ch. 414.
  • natural_persons_only: no.
  • llc_permitted: yes (domestic Hawaii LLC or qualified foreign LLC).
  • foreign_entity_permitted: yes, if qualified under HRS Ch. 414 / Ch. 428.
  • notes: No county FAQ or ordinance identified that restricts bidding to natural persons or excludes any category of domestic entity.
  • citation: Maui County Tax Sale FAQ; HRS Ch. 414, Part XVI (foreign corporations).

Insider / conflict-of-interest prohibitions.

  • who_prohibited: needs_verification — no Hawaii statute or county ordinance was located that expressly prohibits county tax officials, assessors, or their family members from bidding at the county’s own tax sale. Under general ethics principles (HRS Ch. 84, Code of Ethics for Public Officers), public officers are prohibited from engaging in transactions that create a conflict of interest with their official duties.
  • scope: HRS Ch. 84 (State Ethics Code) applies to State employees; counties have their own ethics codes. No specific tax-sale-bidder prohibition identified.
  • citation: HRS Ch. 84; needs_verification for county-specific insider-bid prohibitions.

Right of first refusal.

  • municipalities: needs_verification — no Hawaii statute granting counties a right of first refusal to purchase at their own tax sales was identified. The county is the selling authority; it conducts the auction and is not itself a bidder.
  • cdcs_nonprofits: needs_verification — no identified statute.
  • land_banks: needs_verification — see land bank program below.
  • match_window_days: null — not confirmed.
  • citation: needs_verification.

Land bank program.

  • exists: not confirmed at the State level. The Hawaii County Real Property Tax Division Revenue Cycle Management audit (retrieved via search result) indicates that Hawaii County Code Chapter 19 does not include provisions allowing unsold properties to be conveyed to the County, distinguishing Hawaii from states with active land-bank programs. Each county may have different policies, and the subject is evolving.
  • name: N/A (no state-level land bank identified).
  • statute: none identified.
  • receives_unsold_properties: needs_verification — no confirmed mechanism; if no bid is received at the tax sale, the county may abandon the sale under HRS § 231-66 and wait for another sale cycle.
  • operational_notes: If a property remains unsold after public auction (no proper bid meeting the upset price), the county may postpone or abandon the sale (HRS § 231-66). No formal land-bank transfer mechanism confirmed.

Deficiency judgment rules.

  • permitted_after_tax_sale: no — Hawaii’s tax sale is a “foreclosure without suit” that satisfies the lien from the sale proceeds (HRS § 231-63: “to the highest bidder … to satisfy the lien”). No deficiency judgment is available after a tax sale because the tax lien is discharged by the sale; any remaining unpaid taxes are satisfied from the proceeds waterfall. No statute authorizes a post-tax-sale deficiency against the former owner.
  • permitted_after_mortgage_foreclosure (judicial): yes — circuit court may enter a deficiency judgment against the mortgagor on confirmation of a judicial foreclosure sale (HRS § 667-1.5 et seq.).
  • permitted_after_mortgage_foreclosure (non-judicial / residential owner-occupant): no — HRS § 667-38 prohibits a deficiency judgment against an owner-occupant after non-judicial foreclosure of residential property under HRS 667 Part II, unless the debt is secured by other collateral. [HRS § 667-38, Justia 2024, retrieved 2026-06-02]
  • fair_value_defense: needs_verification for judicial foreclosure — no confirmed Hawaii fair-market-value offset statute analogous to California’s; the court determines the deficiency as the difference between the debt and the confirmed sale price.
  • citation: HRS § 231-63 (no post-tax-sale deficiency); HRS § 667-38 (owner-occupant residential non-judicial bar).

Anti-deficiency statute.

  • exists: yes — HRS § 667-38 functions as a targeted anti-deficiency statute for residential owner-occupants in non-judicial mortgage foreclosures.
  • scope: non-judicial (power-of-sale) foreclosure of residential property against the owner-occupant mortgagor only; does not apply to (a) judicial foreclosures, (b) non-owner-occupied residential property, (c) commercial property, or (d) debts secured by other collateral.
  • citation: HRS § 667-38 (retrieved 2026-06-02).

One-action rule.

  • exists: needs_verification — no Hawaii statute expressly codifying a “one-action rule” (requiring the lender to exhaust the security before suing on the note) was identified. Hawaii is not listed as a one-action-rule state in standard multistate surveys. Lenders in Hawaii may pursue judicial foreclosure AND a deficiency judgment in the same action; the deficiency is determined on confirmation (HRS § 667-1.5 et seq.).
  • citation: needs_verification.
  • notes: The practical limit on deficiency actions is HRS § 667-38 (residential owner-occupant bar in non-judicial foreclosures) rather than a general one-action rule.

Who this page is for

▸ For Investors / Operators — Start with the tax-sale mechanics (§1 — highest-bid cash auction at the upset price, cashier’s checks, no lien certificate) and the redemption structure (§2/2b — one-year post-sale window, 12%/yr, paid directly to the purchaser, assignability of the deed during the window). The acquisition-critical modules are the title path (§5b — quiet title under HRS Ch. 669 plus Land Court clearing for Torrens parcels, deed seasoning, no Marketable Title Act), lien survival and purchaser exposure (§7b — senior pre-tax-lien encumbrances, IRS § 7425, the HRS § 514B-146(g) six-month condo super-priority subordinate to tax liens, CERCLA), and the restrictions/special rules (§11b).

▸ For Former Owners — The surplus / excess-proceeds section (§3) explains who is entitled to money left over after a tax sale, the HRS 246-63 / ROH § 8-5.9 waterfall, the county filing venue, the HRS § 231-70 interpleader route in Circuit Court, and the HRS Ch. 523A unclaimed-property backstop. The right-of-redemption section (§2) covers the one-year window to buy the property back, and §5c covers emergency relief (TRO / injunction) to halt a sale.

11. Meta

  • sources:
  • needs_verification:
    • Full verbatim current text of ROH § 8-5.6 (tax deed/redemption) and § 8-5.9 (surplus) for Honolulu, and the equivalent ordinances for Hawaiʻi/Maui/Kauaʻi — amlegal.com, capitol.hawaii.gov, justia, and onecle were all Cloudflare/403- blocked from this environment; relied on WebSearch snippets + the surviving HRS 231 / repealed HRS 246 parallel text and county FAQs.
    • Whether the redemption right tolls for minors/incompetents under the current county ordinances (old HRS 246 had limited provisions).
    • Whether assignment of a statutory post-sale redemption right to a third party is permitted under current Hawaii law (statute silent; no case found).
    • Whether assignment of a tax-surplus claim to a third party is permitted before county remittance to the State; LienSuite secondary source says “Not Allowed” but no primary statute identified.
    • County deadline/holding period before unclaimed surplus is remitted to the State, and the per-county surplus-claim forms/venue; LienSuite says “1 year” but no primary county ordinance confirmed. (General HRS Ch. 523A dormancy is 5 years for most property types, but the county-specific holding period before remittance has not been confirmed by a county ordinance text.)
    • Whether the HOA six-month super-priority portion under HRS § 514B-146(g) survives a tax sale or is extinguished along with other junior liens.
    • Full text of HRS Ch. 128D §§ 128D-4 and 128D-5 — state environmental cost-recovery lien on real property not confirmed at primary-text level (capitol.hawaii.gov blocked; chapter index reviewed only).
    • Whether municipal/county code-enforcement liens survive a Hawaii tax sale and by what priority rule.
    • Whether mechanics’ liens (HRS Ch. 507) recorded before the tax delinquency survive the tax sale.
    • County-level subsequent-tax obligation for the deed-purchaser during redemption — statute confirms purchaser is assessed; no express “must pay subs to preserve purchase” rule confirmed.
    • Insider bid prohibitions — no county-specific restriction beyond State ethics code (HRS Ch. 84) identified.
    • Right of first refusal for municipalities, CDCs, land banks — no statute identified; needs county-level research.
    • Land bank program — Hawaii County Code Ch. 19 reportedly excludes conveyance of unsold properties to the county; other counties not confirmed.
    • Fair-value defense to deficiency judgment in judicial mortgage foreclosures — no Hawaii statute parallel to California Code of Civil Procedure § 580a confirmed.
    • One-action rule — Hawaii not confirmed as a one-action-rule state; needs primary verification.
    • Installment redemption — lump-sum appears to be the only mechanism; no installment provision found.
    • Title insurer deed seasoning requirement after redemption period lapses — underwriter-specific; no uniform Hawaii rule confirmed.
    • Whether a Marketable Title Act exists in Hawaii — not found; needs comprehensive HRS chapter search.
    • A Hawaii-specific tax-deed redemption or notice case (none located that could be verified to primary source; not fabricated).
  • open_questions:
    • Do all four counties use identical ROH-style surplus language, or do Maui/Kauaʻi diverge? (Maui FAQ says surplus is handled “per state and county law.“)
    • Post-Tyler, have any Hawaii counties added an affirmative surplus-notice/claim statute beyond the existing officer-distribution duty?
    • Does the tax-deed purchaser’s status as “owner of record” during the redemption period create a duty to maintain the property under county code, and what liability flows if the former occupant causes damage?
  • cross_links: right-of-redemption, surplus-funds, third-party-recovery-rules, treasurer-sale, sheriff-sale, due-process-notice, tyler-v-hennepin-county, jones-v-flowers, mennonite-v-adams, mullane-v-central-hanover, mount-v-apao, santiago-v-tanaka, bankruptcy-automatic-stay, federal-tax-lien-redemption, heirs-property, scra-protections, land-court-registered-land, hoa-super-priority, void-vs-voidable, environmental-lien-survival, one-action-rule, anti-deficiency
  • changelog:
    • 2026-06-01 — Initial autoresearch draft. Established that HRS Ch. 246 was repealed (L 2016, c 52) and tax-sale law now lives in county ordinances (ROH Ch. 8) with surviving HRS Ch. 231 analog; documented 1-yr/12% redemption, HRS 246-63/ROH 8-5.9 surplus waterfall (Tyler-compliant), HRS 667 mortgage rules (cure to 3 days pre-sale, no post-sale redemption, owner-occupant deficiency bar, surplus to mortgagor), and HRS 523A-25 25% locator cap. Verified Mount v. Apao and Santiago v. Tanaka to primary sources.
    • 2026-06-02 — Added 7 advanced modules (2b, 3b, 5b, 5c, 7b, 10b, 11b). Retrieved full HRS §§ 231-62 through 231-70 text from files.hawaii.gov PDF. Confirmed HRS § 514B-146(g) HOA six-month super-priority (junior to real- property taxes). Confirmed HRS § 651C (UFTA) fraudulent-conveyance exposure for surplus assignments. Confirmed HRS § 667-38 owner-occupant anti-deficiency bar (non-judicial residential). Retrieved Hawaii deceased-owner unclaimed-property instructions confirming small-estate affidavit route for estates ≤ $100,000. Retrieved HRCP Rule 65 (injunctions) and confirmed four-factor PI standard. Retrieved 26 U.S.C. § 7425 IRS 120-day redemption applies to Hawaii tax sales. Confirmed HRS Ch. 669 quiet title in circuit court; Land Court for registered land. Many sub-fields remain needs_verification due to county-level blocking and absence of confirming primary authority.
    • 2026-06-10 — Verification pass targeting highest-priority legal-substance gaps. CLEARED: (1) Non-judicial foreclosure day-counts filled from HRS 667 PDF primary text: 60-day cure deadline (§ 667-22); sale no earlier than 60 days after publication or 14 days after third weekly ad (§ 667-25); three weekly publications (§ 667-27); 45-day completion window for purchaser (§ 667-30) — removed needs_verification flag. (2) HRS § 421J-10.5 planned community association lien CONFIRMED: does NOT have super-priority over prior-recorded mortgages (unlike § 514B-146(g) condos); priority follows recordation date; updated 7b to reflect this. (3) HRS § 657-31 twenty-year SOL for real-property actions CONFIRMED as applicable SOL for tax deed challenges; section 7 updated to remove flag. (4) HRS Ch. 128D super-lien: no super-lien provision identified in chapter index; updated note from needs_verification to “not identified” with honest gap notation. (5) HRS Ch. 523A general dormancy confirmed as ~5 years (most property types) from secondary source; county-level holding period before remittance still flagged. REMAINING FLAGS: ROH ordinance text (county-level blocking); minor/incompetent tolling; redemption-right and surplus-claim assignability; exact county surplus holding period; HOA tax-sale survival case; 128D § lien text at primary level; code-enforcement and mechanics’ lien survival; insider bid prohibitions; ROFR/ land bank details; fair-value defense; one-action rule; installment redemption; deed seasoning; Marketable Title Act; Hawaii-specific tax-deed notice case.

Local pages

County deep dives: honolulu-hi Unclaimed funds agency: unclaimed-property-hawaii

Legal information, not legal advice. This page summarizes statutes, ordinances, and cases as of 2026-06-10 and may be incomplete or out of date. Verify every cited primary source and consult a licensed Hawaiʻi attorney before acting.

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