Selling inherited land in Hawaii

Hawaii's small estate rules

In Hawaii, the small estate process generally does not transfer land, so heirs of vacant land usually need probate or another court step first.

The threshold: Affidavit collection of personal property: gross estate in Hawaii not over $100,000 (motor vehicles transferable regardless of value), with no personal representative petition pending.

The affidavit covers personal property only. If the decedent's Hawaii property totals $100,000 or less, land included, the court can let its clerk administer the estate (560:3-1205). Land passes outside probate if the owner signed a transfer on death deed (HRS ch. 527).

Law: HRS 560:3-1201, 560:3-1205, HRS ch. 527. Confirm current figures with the probate court.

Steps to sell inherited land in Hawaii

• Find the will, if there is one, and the deed or tax bill showing the parcel.
• Ask the probate court or an attorney which path applies: full probate, a small estate process, or another filing.
• Get written proof of who can sign, such as letters from the court. The title company will ask for it.
• If several heirs inherited the land, agree on the sale and the split in writing. See selling land owned by several heirs.
• Ask for a cash offer and compare it with a listing. Taxes and loans are paid from the sale at closing.

Taxes when you sell

Inherited land usually gets a stepped-up basis: its value on the date of death. If you sell close to that value, the taxable gain may be small. Our capital gains guide explains it. Ask a CPA about your numbers.

Hawaii land at a glance

• Average property tax on farmland: about $22.52 per acre per year (2022 Census of Agriculture).
• Transfer tax: Conveyance tax is one rate on the whole price, $0.10 per $100 for property under $600,000. The rate is $0.20 from $600,000 to $1 million, $0.30 to $2 million and $0.50 to $4 million. It is $0.70 to $6 million, $0.90 to $10 million and $1.00 above. The minimum tax is $1. A higher schedule applies only to a condo or single-family home sold to a buyer not eligible for a county homeowner exemption.
• Seller disclosure: The Hawaii seller disclosure statute covers only residential real property (1 to 4 dwelling units or a residential condo/co-op), so vacant land is outside it. Common-law duty to disclose known material facts still applies.

These are statewide averages, not an appraisal. See selling land in Hawaii for county values, or try the land value estimator.

How a cash sale handles this

Liberty Acres is a family-owned cash land buyer. We buy land anywhere in the US, in any condition, including land with back taxes, inherited land and land with no road access. We pay back taxes and all closing costs, use no agents and charge no commissions, and close through a title company, escrow company or real estate attorney who pays you by wire or check.

Common questions