In thirty-five years of real estate law, I saw the same pattern repeat itself on both sides of the country: transactions that should have closed cleanly fell apart, or got renegotiated at the worst possible moment, because a seller did not get ahead of what the buyer, lender, and title company were going to ask about anyway. A disclosure packet is not a legal formality. It is your first move in a negotiation, and putting together a thorough one before you list puts you in control of how that conversation goes.
In Kona and across Hawaii County, the disclosure picture has some specific layers that mainland sellers are not used to: Special Management Area filings, lava hazard zone designations, catchment water systems, cesspool status, and solar interconnection paperwork that lenders now scrutinize closely. None of these are dealbreakers if they are documented clearly. All of them can become dealbreakers if buyers find out about them mid-escrow instead of up front.
Key Takeaways
- A complete disclosure packet reduces surprise renegotiations, protects sellers legally, and signals to buyers and lenders that the property is ready to close.
- Hawaii County's TMK number is the key to pulling permit history, planning records, and SMA files. Start there.
- Unpermitted improvements are common in Kona. Document them clearly and start the retroactive permit process early rather than letting buyers discover them during due diligence.
- Solar, catchment water, and onsite wastewater systems all require specific documentation that lenders now review carefully.
- SMA determinations, FEMA flood maps, lava hazard zone designations, and tsunami evacuation maps should all be in the packet for Kona properties.
- Start collecting records early. County permit files and SMA case records can take one to four weeks to retrieve.
Why This Matters More in Hawaii
The legal framework for seller disclosure in Hawaii starts with the Hawaii Association of Realtors Seller's Property Disclosure Statement, which covers known material defects, past repairs, hazards, and permit status. That form is the floor, not the ceiling. What makes Kona transactions more complex than most mainland sales is the number of Hawaii-specific systems and designations that need additional documentation beyond the standard form.
Lenders have tightened their review of Hawaii properties in recent years. Catchment water systems, cesspools flagged for upgrade under state programs, solar installations with missing interconnection approvals, and properties in Special Management Area jurisdiction are all areas where incomplete documentation stalls underwriting or triggers conditions that delay closing. Title companies flag open permits and recorded violations before they will insure. Buyers who have been through a Hawaii transaction before know to ask for all of it. Getting ahead of those questions is how you protect your timeline and your price.
The Core Documents Every Kona Seller Needs
Start with the foundation: the current deed, any recorded easements, rights-of-way, covenants, and use restrictions. If you have a recent preliminary title report, include it. Add the Tax Map Key number, current property tax bill, and the Hawaii County Real Property record. The TMK is the reference number for pulling everything else: permits, planning history, SMA filings. All of it runs through that number.
If you have a current boundary survey, include it. For properties near lot lines with improvements close to the boundary, or any coastal parcel, a survey is not optional. Buyers and lenders will ask for it. Shoreline certification may also be required for coastal properties.
Then comes the permit file. Collect building, electrical, plumbing, mechanical, roofing, grading, and foundation permits along with final inspection sign-offs or Certificates of Completion. This is where sellers most often have gaps. Lanais added without permits, garage conversions, accessory dwelling units, retaining walls, solar installations missing county sign-off. All of these show up in title review. The right approach is to identify any unpermitted improvements before you list, document what was done with contractor statements and photos, and start the retroactive permit process early if one is available. Resolving these ahead of listing prevents title insurance holdbacks and avoids the worst-case scenario where a buyer's lender conditions funding on permit resolution with a closing date already set.
Special Management Area Records
If your parcel lies within Hawaii County's Special Management Area jurisdiction, this is a non-negotiable part of your disclosure packet. SMA jurisdiction covers coastal areas and certain other designated zones, and buyers and their lenders will want to see SMA determinations, permits or exemption letters, and any related enforcement actions or conditions on the property.
Confirm your SMA status and pull any applicable records from the Hawaii County Planning Department. If your property is outside SMA jurisdiction, state that clearly in your disclosure. If there is any ambiguity about the boundary, resolve it before listing rather than leaving it for a buyer's agent to raise mid-escrow. Environmental assessments and mitigation documents related to any SMA filing should also be included.
Hazard Maps and Designations
Buyers, lenders, and insurers expect specific hazard documentation for Hawaii properties. For Kona, the relevant maps cover four areas.
For flood risk, provide the FEMA Flood Insurance Rate Map panel and flood zone for your property. If the parcel is in a Special Flood Hazard Area, note whether an elevation certificate exists. Lenders use this to confirm flood insurance requirements and, in some cases, to determine whether the zone designation can be challenged.
For tsunami hazard, include the applicable county or state tsunami evacuation or inundation map. Note whether your property is inside an evacuation zone and reference the nearest evacuation routes. For properties in evacuation zones, this is a disclosure item. Buyers are entitled to know.
For volcanic and lava hazard, include the USGS lava flow hazard zone for your specific parcel. The Kona area is primarily Zone 4 on Hualalai's flanks, which is a lower-risk designation than the active rift zones, but lenders and insurers still note the official zone in underwriting.
For coastal properties, include any shoreline setback records, certified shoreline surveys, and erosion-related studies relevant to the property. If the property is on steeper terrain, geotechnical documentation addressing slope stability adds value and reduces buyer anxiety about structural risk.
Utilities and Onsite Systems
This is the section where Kona seller disclosures diverge most sharply from what mainland buyers expect. Three systems require careful documentation here that would be straightforward or irrelevant in most mainland markets.
For water, the documentation depends on your source. If you are on county water, include the Department of Water Supply account and meter information. If your home relies on a private well or catchment system, provide well permits or system details plus recent water quality test results covering bacteria, nitrates, and pH. Buyers and lenders have become significantly more careful about private water sources, and recent lab results are often a lender condition rather than just a buyer request. Schedule the test early.
For wastewater, confirm whether you are on county sewer or an onsite system. For septic, include the permits, as-built plans, and service logs. For cesspools, which are common in older Kona properties, disclose the system's status clearly, include any Department of Health correspondence, and note any planned or required upgrade timeline. State programs have established timelines for cesspool conversion, and buyers need to understand where your property stands in that process. Lenders scrutinize cesspool status. Getting ahead of this disclosure prevents it from becoming a renegotiation point.
For solar and electrical, include recent HELCO bills, meter type, and service capacity. For solar installations, the documentation list has grown significantly as lenders have learned to ask for it: county permits, final inspection sign-offs, utility interconnection approval, equipment specs, serial numbers, installer contacts, maintenance records, and warranty transfer information. A solar system without interconnection approval or with an outstanding permit condition is a financing obstacle. Resolve it before listing if you can.
Warranties, HOA Records, and Inspections
Collect original warranty documents, proof of purchase or installation dates, serial numbers, service history, and installer contacts for major systems: roof, HVAC, plumbing, electrical, solar, appliances, pool or spa equipment. Note whether each warranty transfers to a new owner and what steps are required. For solar specifically, confirm whether equipment manufacturer warranties are currently registered and what the transfer process involves.
For properties in HOA communities, include the CC&Rs, bylaws, house rules, architectural guidelines, current budget and recent financials, reserve study and reserve balance, meeting minutes for the past 12 to 24 months, master insurance declarations, and a list of any pending or recent special assessments or litigation. Buyers reviewing an HOA community want to understand the financial health of the association, not just the monthly fee. Weak reserves, pending assessments, or unresolved litigation are the items that kill deals late. Surface them early.
Current inspection reports strengthen your packet considerably. A recent home inspection, roof inspection, termite clearance, and septic inspection or service record all tell buyers and lenders that you know the condition of your property and are not hiding anything. Buyers in a competitive situation are more comfortable waiving inspection contingencies when the seller has already provided independent inspection documentation. That is a real negotiating advantage.
How to Organize the Packet
A clean structure speeds lender review, appraisal, and title examination. Use a cover page with your address, TMK, and contact information, followed by tabbed sections. The order that works well: core property documents including deed, TMK, survey, and title exceptions; permits and compliance including SMA files, final approvals, and any open permits; hazard maps and environmental records; utilities and systems documentation; warranties and vendor files; inspections and reports; HOA or CC&R records if applicable; and the completed seller's disclosure form and any statutory notices.
Compile everything into one well-organized PDF. Buyers, inspectors, lenders, and title all working from the same packet reduces the number of individual document requests you field during escrow and keeps everyone on the same timeline.
Timeline: Start Earlier Than You Think
The most common disclosure mistake Kona sellers make is waiting until they have an accepted offer to start pulling records. County permit files and SMA case records can take one to four weeks to retrieve, particularly for older properties or files that require an in-person request. Water quality tests, septic inspections, and termite clearances take one to seven days depending on vendor availability. Retroactive permit applications, if you have unpermitted work to resolve, can take weeks to months depending on scope and complexity.
Start the records pull when you decide to list, not after you accept an offer. Sellers who have a complete packet ready at listing move faster, negotiate from a stronger position, and close with fewer surprises. That is the practical reason to do this work early, beyond the legal obligation to disclose what you know.
Frequently Asked Questions
What is a seller disclosure packet and why does it matter in Kona?
A disclosure packet is a complete set of property documents and disclosures that answers buyer, lender, and title questions before they ask them. In Kona, the Hawaii-specific elements add layers that mainland sellers are not used to: SMA filings, lava zone designations, catchment water systems, cesspool status, solar documentation. A complete packet reduces renegotiations, protects the seller legally, and signals to buyers that the property is ready to close.
Do I need SMA records if my Kona property is not on the coast?
If your parcel is outside SMA jurisdiction, state that clearly in your disclosure. If there is any ambiguity about whether your property falls within SMA boundaries, confirm with the Hawaii County Planning Department before listing. Properties near the SMA boundary that have had any permitted work should include the relevant SMA determinations or exemption letters regardless.
What do I need to disclose about unpermitted improvements?
Disclose them clearly on the seller's disclosure form and document what was done: contractor statements, photos, and dates where available. If a retroactive permit process is available for the improvement, starting it before listing is almost always the better move. Open permit issues and recorded violations can block title insurance and stall financing. The earlier you identify and address them, the less leverage they give a buyer during negotiation.
What solar documentation do Kona lenders actually require?
Lenders have become significantly more thorough about solar review. Expect to provide county building permits for the installation, final inspection sign-offs, utility interconnection approval from HELCO, equipment specs and serial numbers, installer contacts, maintenance records, and warranty transfer documentation. A solar system with an outstanding permit condition or missing interconnection approval is a financing obstacle. Resolve those issues before listing if possible.
How do lenders view cesspools in Kona home sales?
Lenders want clarity on system type, condition, and upgrade status. Include permits, as-built plans if available, service records, and any Department of Health correspondence. State cesspool conversion programs have established timelines that affect properties across Hawaii County, and buyers need to understand where your property stands. Disclosing this clearly and early prevents it from becoming a negotiation point after you already have an accepted offer.
How long does it take to collect the records needed for a Kona disclosure packet?
Recent digital permit files can be retrieved quickly. Older records, SMA case files, or files requiring in-person requests can take one to four weeks. Water quality tests, septic inspections, and termite clearances typically take one to seven days. Retroactive permit applications, if needed, can take weeks to months depending on the scope of the work. Start pulling records when you decide to list, not after you accept an offer.
If you want experienced eyes on your disclosure packet before you list, help resolving open permit issues, or a clear plan to get your property market-ready, that is exactly the kind of pre-listing work we do with sellers in Kona. Reach out to us at Kona Homes for Sale or call 808-854-5432.
For related reading: our post on leasehold vs. fee simple in Kona covers title considerations that affect how you present your property, and our guide to HOA documents walks through what buyers look for in association financials.
Mark Davis, Esq. is a licensed real estate broker (RB-23769) with Kona Homes for Sale at Coldwell Banker Island Properties, Kailua-Kona, Hawaii. He practiced as a transactional and litigation real estate attorney for 35 years before moving to the Big Island full time. He currently serves as a member of the Hawaii County Real Property Tax Board of Appeal.
Brenda Kuessner holds the ABR, CRS, e-PRO, GRI, and GREEN designations and has sold real estate on the Big Island for 35 years. Together they serve buyers and sellers across the Kona and Kohala Coast market. This post is for general informational purposes only and does not constitute legal or tax advice.
