Buying in Kahului comes with a unique twist you might not expect: Hawaii uses two different title systems. If you have heard people mention “Land Court” or the “Regular System,” you are not alone. The differences are real, and they can change your paperwork, your lender’s steps, and your timeline. This guide breaks it down in plain language so you know what to look for on your prelim, how it affects closing, and what to ask your lender and escrow team from day one. Let’s dive in.
Hawaii’s two title systems, at a glance
Land Court basics
Land Court is a court‑supervised system that issues a formal certificate of title. The certificate lists the registered owner and any registered encumbrances, such as mortgages and easements. Registration offers strong evidence of ownership for the matters shown on the certificate. When something changes, like a new owner or a new mortgage, that change is entered by the registrar and reflected on the certificate.
You will likely see the terms “Certificate of Title,” “Registered Owner,” and a Land Court registration number on your documents. While Land Court resolves many title issues up front, it does not eliminate every possible risk. Off‑record problems, such as undisclosed liens or fraud, can still exist, which is why title insurance remains relevant.
Regular System basics
The Regular System is based on a chain of recorded documents. Ownership and interests are proven by searching deeds, mortgages, easements, and other instruments recorded with the State’s Bureau of Conveyances. There is no single certificate of title here.
On your prelim, you will see recorded instrument numbers, grantor and grantee entries, and a list of documents that make up the chain of title. Because the proof is in the history, unresolved gaps or missing recordings can require curative work before closing.
What this means to you in Kahului
Both systems are common across Maui. The system your property uses will shape your prelim, how your deed and mortgage are handled, and how your lender and escrow schedule your recording. Knowing which system you have early helps you ask the right questions and avoid surprises.
What you will see on your prelim
If the parcel is Land Court
A Land Court prelim usually shows the registered owner and a Land Court registration number. You may receive a copy or summary of the certificate of title. The report lists registered encumbrances like mortgages, easements, and caveats that have been entered into the Land Court index.
Expect to see exceptions the insurer will not cover unless resolved, such as certain unrecorded rights, survey issues, or tax matters. The prelim may note if the certificate is an original or a duplicate and whether a lender is holding it.
If the parcel is in the Regular System
A Regular System prelim lists the chain of recorded documents from the Bureau of Conveyances. You will see deeds, mortgages, easements, CC&Rs, judgments, and any recorded notices like a lis pendens.
The search is organized by instrument numbers and grantor or grantee indexes. Exceptions typically include items that must be paid off, verified, or accepted before you can close.
Deeds, mortgages, and closing timelines
Transfers and deeds
For Land Court property, your transfer is registered with the Land Court, and the registrar updates the certificate to show you as the new owner. For Regular System property, your deed is recorded in the Bureau of Conveyances and indexed there.
The procedures differ, but local title and escrow teams handle both every day. Your escrow officer coordinates the paperwork to fit the system your parcel uses.
Mortgages and lender steps
On Land Court parcels, lenders usually require the mortgage to be registered so the lien appears as a memorandum or entry on the certificate. Some lenders may also require delivery of the original certificate or specific proof of registration. On Regular System parcels, the mortgage is recorded with the Bureau of Conveyances.
Lenders are familiar with both systems, but requirements vary. Confirm what your lender needs as soon as escrow opens so your closing stays on track.
Escrow and timing
Land Court registrations can add steps, such as waiting for the registrar’s entry on the certificate or coordinating how and when the lender receives it. Regular System recordings follow the Bureau’s routine intake and indexing process. Your escrow officer manages payoff of existing mortgages, clears items that can be cleared, and sequences documents for recording or registration.
Title insurance in both systems
Title insurance is standard in Hawaii and serves different roles in each system. On Land Court parcels, it protects you against off‑record risks like fraud, forgery, or errors that do not appear on the certificate. On Regular System parcels, it protects against defects that might hide in the document history, such as a forged deed or a missed lien.
If you use financing, your lender will almost always require a lender’s policy. An owner’s policy is optional but is commonly recommended to protect your equity. Your title officer can explain coverage and premiums for your situation.
Kahului items to watch
Kahului buyers should expect a few recurring themes on prelims and closing checklists:
- Utility and access easements. Many Maui properties have recorded easements for roads, utilities, or shared driveways.
- County taxes and assessments. Confirm property tax status and any special assessments with the Maui County Real Property Tax Office.
- Water and meter availability. Check the Maui County Department of Water Supply for service and meter status, especially for new construction or conversions.
- Shoreline and coastal notes. For shoreline or near‑shore parcels, be aware of state and county shoreline and coastal zone rules that can affect use and permitting.
- Agricultural and use restrictions. Some parcels include agricultural designations or use restrictions that appear as recorded encumbrances.
- Condominiums. Condo units may be in Land Court or the Regular System. Confirm how the unit is described on the certificate or deed and review HOA documents and assessments.
Plain‑language terms you will see
- Certificate of Title (Land Court). A court‑issued document showing registered ownership and registered encumbrances.
- Registered Owner / Registration Number. The owner name and the unique Land Court number assigned to the parcel.
- Memorandum of Mortgage (Land Court). The registered entry that shows the lender’s encumbrance on the certificate.
- Grant Deed / Warranty Deed (Regular System). A recorded deed that transfers ownership in the Bureau of Conveyances.
- Easement. A recorded right for someone else to use part of the property, such as for access or utilities.
- CC&Rs / Covenants. Recorded restrictions on use, often tied to subdivisions or planned communities.
- Lis Pendens. A recorded notice that there is litigation that could affect title. This can block closing until resolved.
- TMK (Tax Map Key). The county parcel identifier used for tax billing and cross‑checking county records.
- County Assessments / Special Assessments. Obligations for improvements that may appear on title or in county records.
- “Subject To” clauses. Exceptions the title insurer will not cover unless addressed or accepted.
Your early‑ask checklist
Ask your lender:
- Do you accept Land Court title, and are there special document requirements?
- If the property is Land Court, will you require the original certificate or is a court‑registered entry enough?
- Are there title exceptions that would trigger a loan denial, such as certain easements or pending litigation?
- Which title policy endorsements will you require?
Ask your title or escrow officer:
- Is the property in Land Court or the Regular System, and can I get a copy of the Land Court certificate if applicable?
- Which exceptions are on the prelim, which will be cleared, and which will remain after closing?
- Who prepares and records or registers the deed, mortgage, and releases, and what are the expected timelines and fees?
- Is an owner’s policy available, what coverage applies, and who customarily pays for owner and lender policies under this contract?
- Are there recorded utility easements, rights of way, CC&Rs, or any lis pendens affecting the property?
- For coastal or agricultural parcels, are there special public‑access, shoreline, or zoning notes on title?
Additional practical requests:
- Request a copy of the Land Court certificate and a written summary of registered encumbrances if the parcel is registered.
- Ask escrow for a clear timeline that shows when documents are due and when Land Court entries will be updated.
- Obtain recorded surveys, plot plans, HOA documents, and recent property tax statements.
- Confirm which party pays which title and escrow fees, since practices can vary by contract.
When to bring in a Hawaii real estate attorney
Consider counsel if your prelim shows litigation or a lis pendens, a boundary dispute, or complex issues tied to historical or native rights. You should also consult an attorney if you plan to convert a Regular System parcel into Land Court registration or to deregister Land Court land. If title exceptions look unusually broad or conflicting, or curative steps involve missing heirs or unclear conveyances, legal guidance is recommended.
Bottom line for Kahului buyers
Hawaii’s two title systems are different, but both are well understood by local lenders and escrow teams. The key is to identify your system early, read your prelim carefully, and ask direct questions about exceptions, timelines, and lender requirements. With the right plan, you will move through escrow with fewer surprises and close with confidence.
If you want a local guide to walk you through your prelim, coordinate with your lender, and manage the moving parts from offer to recording, reach out to Christian Slocum at Hawai‘i Life to get started. Request a free home valuation or schedule a consultation.
FAQs
What is the difference between Land Court and the Regular System in Hawaii?
- Land Court uses a court‑issued certificate of title with registered entries, while the Regular System relies on a chain of recorded documents at the Bureau of Conveyances.
How do I know which system my Kahului property uses?
- Your preliminary title report will state whether the parcel is Land Court or Regular System and will include the registration number or the list of recorded instruments.
Does Land Court mean I can skip owner’s title insurance?
- No, title insurance is still advisable because Land Court does not cover off‑record risks like fraud, forgery, or undisclosed liens.
Will Land Court registration delay my Kahului closing?
- It can add steps for registration and certificate handling, so confirm timelines with your escrow officer and lender early in the process.
What local Kahului issues could affect title or use?
- Common items include utility easements, county taxes or assessments, water meter availability, shoreline rules for near‑coast parcels, and HOA obligations for condos.
What should I ask my lender about Land Court requirements?
- Ask if they require the original certificate, which endorsements they need, and whether any specific title exceptions would affect loan approval.
