Statistics for October 2019 in Maui since the start of the year; Real Estate Tax Law for Foreign Investments
Maui statistics for October 2019 since the beginning of the year
Until October 2019, the median selling price of homes, condos and land increased by $ 745,000 (up 6%), $ 518,000 (up 4%) and $ 500,000 ( up 5%), respectively. While the number of closed sales of homes (down 2%) and condos (down 5%) are down from 2018, the West Maui district is the only area in Maui where sales have increased. . West Maui home registrations are up 8%, with Kapalua seeing the largest increase of 125%. Condo registrations in West Maui jumped 3% with condo sales in Kapalua increasing 30%, or 12 more condos on record.
For a full eight page report on Maui statistics, click here.
Foreign Investment Real Estate Tax Act (FIRPTA)
The Foreign Investment Real Property Tax Act, or FIRPTA, requires the buyer who purchases real estate from a foreign seller to withhold 10-15% of the amount realized (usually the sale price) and remit it to the IRS within 20 days of closing unless an exemption applies.
In 2015, President Obama enacted the Protecting Americans from Tax Hikes Act of 2015, which significantly changed the withholding rate from 10% to 15% in certain circumstances. This withholding tax is an estimate of the federal capital gains tax that the seller may owe in the United States upon relinquishing a property in the State of Hawaii. The applicable percentage will depend on the sale price and how the buyer / acquirer intends to use the property. *
It is the seller’s responsibility to prove that an exemption / waiver applies and it is the buyer’s responsibility to acknowledge and approve the seller’s exemption / waiver prior to closing. In the Hawaii Association of REALTORSÂ® Standard Purchase Agreement, the purchase agreement includes instructions for the escrow to withhold and remit the FIRPTA amount to the IRS, unless the seller provides to the purchaser a certificate of exemption or waiver from FIRPTA. (Please see the table below).
** This information is presented for informational purposes only. Our intention is not to provide legal, financial or business advice. For specific information, please consult a qualified advisor.
Reta Chin Chiarella
AVP, Strategic Business Development
National title of loyalty and commitment:
Reta Chin-Chiarella is a Maui Now contributor. Reta’s experience in the escrow / title / real estate industry in Maui dates back to 1990. Named Affiliate of the Year by the Association of Realtors in 2000 and she was also recognized for selling awards during of her career. Fidelity National Title is recognized as the industry leader, ranked 303 in the Fortune 500. Fidelity is the highest rated and largest title insurance company, underwriting one of three policies nationwide. One of the offices is located in Wailea Stores at 3750 Wailea Alanui, Suite 22EW in Wailea. You can follow Reta on IG @RetaChinFidelity.
National Title Loyalty and Escrow offices are available at: Kahului (808) 893-0556; Lahaina (808) 661-4960; Upcountry (808) 573-0110; and Wailea (808) 891-2404.
* All information believed to be reliable but not guaranteed, and should not be relied upon without independent verification. All properties are subject to prior sale, change or withdrawal. Neither listing brokers nor information providers will be responsible for any misprints, typographical errors or misinformation and will be held completely harmless. Listing information is provided by the Maui Real Estate Association Inc. (C) and is intended for the personal, non-commercial use of the consumer. The information on this site was last updated (insert date of publication). This is not legal or tax advice, and readers are urged to consult with the appropriate professionals to determine the accuracy of the information.