Hawaii Redemption Deeds

Sale Type:	Redemption Tax Deeds
Interest Rate:	12%
Bid Method:	Premium Bid
Redemption Period:	1 Year
Sale Date(s):	Infrequent
Statute Section(s):	Title 14, CH 246
Over-the-Counter:	No
State Website:	www.ehawaii.gov

Hawaii State Overview

Tax sales in Hawaii are very similar to those conducted in a tax lien state. The county tax collector or treasurer oversees the tax sales. Tax deeds sold in Hawaii are purchased with a one year right of redemption. Tax deeds must be recorded with the county within 60 days of the sale to maintain a 12 month redemption period. If the tax deed is recorded later than 60 days from the auction date the redemption period is one year from the recorded date. A penalty rate of 12% is applied to the redemption of all tax deeds. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the 12 month period the tax collector or tax collector’s assistant shall execute the process of terminating redemption rights.

Hawaii has a 12% penalty rate for the first year. The penalty rate is paid on the amount paid by the purchaser, plus an additional fee for recording the tax deed. If a deed is not recorded within 60 days of the sale, the interest shall not be added for the extended redemption period.

Hawaii uses the Premium Bid method. The starting bid will include all back taxes, penalties, interest, and administrative costs. The deed will be bid up in price until a high bid has been established. The investor bidding the highest amount will receive the deed to the property.

• In Hawaii there are two main areas to invest in, the west and the east. According to local facts, the west area has more property that can be accessed.
• There are very few tax deed properties available in this state, but when there are auctions, they usually take place in June, November, and December.