HRS §508-1
Who Bears the Loss if Property Is Destroyed Before Sale Closes
This law decides who loses money if the property being sold is destroyed or taken by the government before the sale is complete. If the buyer hasn't gotten the title or possession yet, the seller can't force the sale and the buyer gets their money back. If the buyer already has title or possession, the buyer still has to pay the full price.
buyerslandownerssurveyors
The statute, as written — Risk of loss
Any contract made in this State after April 25, 1941 for the purchase and sale of realty shall be interpreted as including an agreement that the parties shall have the following rights and duties, unless the contract expressly provides otherwise: (1) If, when neither the legal title nor the possession of the subject matter of the contract has been transferred, all or a material part thereof is destroyed without fault of the purchaser or is taken by eminent domain, the vendor cannot enforce the contract, and the purchaser is entitled to recover any portion of the price that the purchaser has paid; (2) If, when either the legal title or the possession of the subject matter of the contract has been transferred, all or any part thereof is destroyed without fault of the vendor or is taken by eminent domain, the purchaser is not thereby relieved from a duty to pay the price, nor is the purchaser entitled to recover any portion thereof that the purchaser has paid.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.