How Much Are Closing Costs When Buying a Home on Maui?
Closing costs in Hawaii are the fees and charges you pay to complete a purchase, on top of your down payment. For a Maui buyer, they usually include escrow fees, title insurance, recording fees, and, if you finance, lender charges and an appraisal. You will also prepay items like interest, homeowners insurance, and property tax reserves. The total depends on your price, your loan, your lender, and what your purchase contract says, so there is no single percentage that fits every deal. The best way to know your number is to look at your lender’s Loan Estimate and your escrow company’s estimate.
Over more than 150 transactions since 2013, in Washington State and on Maui, I have found that the buyers who feel calm at closing are the ones who planned for their full cash to close from the start. This guide walks through what goes into that number. For lending, tax, or legal questions, talk with your lender, escrow officer, a tax professional, or an attorney.
What Closing Costs Do Maui Homebuyers Pay?
It helps to sort the money you will spend into three groups:
- Closing costs. One-time fees for services and government charges needed to close, like escrow, title, recording, and lender fees.
- Prepaid items. Costs you pay ahead at closing, like prepaid interest, your first year of homeowners insurance, and an initial escrow deposit for taxes and insurance if your lender requires an escrow account.
- Pre-closing expenses. Costs you often pay during escrow, outside the closing statement, like a home inspection or other specialized inspections.
| Cost | What it is |
|---|---|
| Lender origination and underwriting | Fees your lender charges to process and approve your loan. Financed buyers only. |
| Appraisal | An independent estimate of the home’s value that your lender orders. Financed buyers only. |
| Title insurance | A lender’s policy protects your lender. An owner’s policy protects you. |
| Escrow fee | Paid to the escrow company that holds funds, prepares closing figures, and handles the closing. |
| Recording fees | State fees to record the deed and, if you finance, the mortgage. |
| Prepaid interest | Interest from your closing date to the end of that month. |
| Property tax and insurance escrows | Reserves your lender may collect at closing to start an escrow account. |
| Inspections | Home, termite, or other inspections, often paid during escrow. |
| Other charges | Condo association document or transfer fees, notary, courier, or wire fees, depending on the transaction. |
Your purchase contract decides which party pays many of these items, so read that section closely with your agent.
Who Pays Closing Costs in Hawaii: Buyer or Seller?
Both parties pay some costs. According to a summary of customary practice in Hawaii from a national title underwriter, common allocations look like this:
- Escrow and closing fees: commonly split equally.
- Owner’s title policy: commonly split 60/40 between seller and buyer on residential sales, with the buyer paying for extended coverage and endorsements.
- Lender’s title policy: paid by the buyer.
- Conveyance tax: paid by the seller.
- Recording fees: the buyer pays to record the deed and mortgage, and the seller pays for recordings needed to clear title.
Custom is a starting point. The actual obligations come from your purchase contract and applicable law, and buyers and sellers can negotiate different terms, like a seller credit toward closing costs. Your escrow company will apply whatever your contract says.
How Escrow Works When Buying Maui Real Estate
In Hawaii, a neutral escrow company typically handles the money and paperwork for a purchase, and Hawaii law requires escrow depositories to be licensed, with some exceptions. Here is the general flow:
- Offer accepted and escrow opened. Your signed contract goes to escrow, and you deliver your earnest money deposit as the contract requires. Escrow holds it until closing.
- Due diligence. You complete inspections, review disclosures and, for condos, association documents, within the time periods in your contract.
- Title and loan work. The title company searches the property’s records and issues a preliminary title report. Your lender orders the appraisal and finalizes your loan.
- Final figures. If you finance, your lender must give you a Closing Disclosure at least three business days before closing, showing your loan terms, closing costs, and cash to close. Escrow prepares the closing statement.
- Signing, funding, and recording. You sign, wire your remaining funds, the lender funds the loan, and the deed is recorded. That is when the home is yours.
The deadlines in your contract set the timing for each step, so keep a copy handy and ask your agent and escrow officer whenever something is unclear.
Understanding Title Insurance and Escrow Fees
Title insurance protects against problems with ownership records that existed before you bought. According to the CFPB, most lenders require a lender’s title policy, which protects the lender up to the loan amount. An owner’s policy protects you, for example against an old claim from unpaid taxes or a contractor who says they were never paid. Cash buyers do not need a lender’s policy, but an owner’s policy is still worth understanding.
The escrow fee pays the escrow company to hold deposits, collect documents, prepare the closing statement, pay off the seller’s loan and other bills, and handle recording. Escrow fees vary by company and price, so ask for an estimate early.
Hawaii Conveyance Tax: What Buyers Should Know
Hawaii charges a conveyance tax when real property changes hands. It is customarily paid by the seller, but buyers should understand it for two reasons: it affects a seller’s net proceeds and can come up in negotiations, and the rate on a home sale depends partly on the buyer.
Under HRS 247-2, the rate is based on the sale price. For a condominium or single-family home, a higher rate applies when the buyer is not eligible for a county homeowner’s exemption, which generally means the buyer will not live in the home as a primary residence. A few examples from the rate schedule:
| Sale price | Rate per $100 (buyer eligible for homeowner’s exemption / not eligible) |
|---|---|
| Less than $600,000 | $0.10 / $0.15 |
| $600,000 to less than $1,000,000 | $0.20 / $0.25 |
| $1,000,000 to less than $2,000,000 | $0.30 / $0.40 |
| $2,000,000 to less than $4,000,000 | $0.50 / $0.60 |
| $4,000,000 to less than $6,000,000 | $0.70 / $0.85 |
| $6,000,000 to less than $10,000,000 | $0.90 / $1.10 |
| $10,000,000 or more | $1.00 / $1.25 |
For example, on a $950,000 sale, the tax would be $1,900 if the buyer is eligible for a homeowner’s exemption and $2,375 if not. Lawmakers have proposed changes to the conveyance tax in recent sessions, so confirm the current rates and any exemptions with your escrow officer before you close.
Example Closing Costs on a Maui Home Purchase
Here is a hypothetical purchase to show how the pieces fit together. These are rounded, illustrative numbers. They are not lender quotes or Maui market averages, and your figures will be different. Recording fees use the state Bureau of Conveyances fee schedule for two documents in the Regular System.
| Hypothetical item | Amount |
|---|---|
| Purchase price | $950,000 |
| Down payment (20%) | $190,000 |
| Loan amount | $760,000 |
| Lender origination and underwriting fees (about 1% of the loan) | $7,600 |
| Appraisal | $800 |
| Lender’s title insurance policy | $1,600 |
| Buyer’s share of owner’s title policy | $900 |
| Buyer’s share of escrow fee | $1,400 |
| Recording fees (deed and mortgage) | $82 |
| Other fees, such as notary, document, or wire fees | $300 |
| Estimated closing costs | $12,682 |
| Prepaid interest (15 days) | $2,030 |
| First year of homeowners insurance | $3,000 |
| Initial escrow deposit for taxes and insurance | $1,500 |
| Estimated prepaid items | $6,530 |
| Total due at closing (down payment, closing costs, prepaids) | $209,212 |
| Earnest money deposit credited at closing | −$20,000 |
| Estimated remaining cash to close | $189,212 |
In this example, the closing costs come to about $12,682, and the prepaid items add about $6,530. The buyer’s earnest money counts toward the total, so it reduces the cash brought to closing. Escrow will also prorate property taxes between buyer and seller. Maui County bills property taxes in two installments, one covering July through December and one covering January through June, so the timing of your closing affects that adjustment.
Cash Buyers vs. Financed Buyers: How Closing Costs Differ
Paying cash removes a whole category of costs. Cash buyers generally skip lender origination fees, the appraisal, the lender’s title policy, prepaid interest, mortgage recording, and lender escrow reserves. They still typically pay their share of escrow and the owner’s title policy, recording of the deed, and any inspections.
Financing adds costs and steps: a Loan Estimate, an appraisal, lender requirements for insurance and escrow accounts, and the Closing Disclosure waiting period. It also adds a funding step on closing day. Many buyers find the trade-off worthwhile, but it is worth building those costs and steps into your plan.
How to Prepare Financially Before Making an Offer
Use this checklist before you write an offer:
Questions for Your Lender
- Can you give me a Loan Estimate for a home at this price?
- What are your origination, underwriting, and appraisal fees?
- Will I have an escrow account, and how much will the initial deposit be?
- How much cash should I plan to have, and how should the funds be documented?
Questions for Your Escrow Officer
- Can you prepare an estimated buyer’s closing statement for this price?
- What are your escrow fees, and what title policy options do you recommend?
- How will property taxes and any association dues be prorated?
- How should I wire funds safely, and how will you confirm wiring instructions?
Questions for Your Real Estate Agent
- How does this contract allocate escrow, title, and other costs?
- Is a seller credit toward closing costs realistic for this property?
- What deposit amount and timing make sense for this offer?
- Are there condo association fees or documents to budget for?
Before you wire any money, call your escrow company at a phone number you already know is correct to confirm the instructions. Wire fraud targets real estate transactions, and a quick call protects you.
Frequently Asked Questions About Hawaii Closing Costs
How much are closing costs in Hawaii?
It depends on your price, loan, lender, and contract. Your Loan Estimate and an escrow estimate will give you real numbers for your purchase.
Are closing costs included in the down payment?
No. Closing costs and prepaid items are separate from your down payment, and you will need cash for all of them unless you negotiate a seller credit or your lender allows other options.
Who pays escrow fees in Hawaii?
Escrow fees are commonly split equally between buyer and seller, but your purchase contract controls.
Does the buyer pay Hawaii conveyance tax?
The seller customarily pays it. The rate on a home sale can be higher when the buyer is not eligible for a county homeowner’s exemption.
Are closing costs different for cash buyers?
Yes. Cash buyers avoid lender fees, the appraisal, the lender’s title policy, and prepaid interest, so their closing costs are usually lower.
Can closing costs be negotiated?
Some can. You can ask for a seller credit, compare lenders, and ask escrow and title companies about their fees. Government fees and taxes are set by law.
When do buyers receive their final closing figures?
If you finance, your lender must give you a Closing Disclosure at least three business days before closing. Escrow provides the final closing statement.
What happens to the earnest money deposit at closing?
It is credited toward your down payment and closing costs, which reduces the cash you bring to closing.
Plan Your Maui Home Purchase With Josh Feyen
Knowing your full cash to close makes the whole process smoother. Browse Maui homes for sale, use my Maui property search, or explore the North Shore, Upcountry, and South Maui. For the bigger picture, see my Maui real estate guide, my latest Maui market update, and my guide for first-time Maui buyers.
When you are ready, reach out. I am happy to walk you through the process and connect you with lenders and escrow officers who can give you real numbers for your purchase.
This article is general information and should not be taken as lending, tax, or legal advice. Josh Feyen is a licensed real estate agent and does not provide lending, tax, or legal services. Costs and allocations vary by transaction, so confirm figures with your lender, escrow officer, and qualified professionals. Sources last reviewed October 17, 2026.