The Fine Print: Part 3: Short-Term Rental Disclosure Statement (STR)

In 2022, the City and County of Honolulu passed an ordinance requiring that the Seller must provide the Buyer with this form when selling the property on Oahu, regardless of whether or not the property may be legally used as an STR. This is not a requirement that spans all islands as it is county specific. For more information, you can visit: https://www.honolulu.gov/dpp/permitting/short-term-rentals.html 

There are 4 different options for the Seller to select from and some may require additional information or documentation from the Seller.

1. Seller discloses that it is not a legal STR.

2. Seller disclosure that the property is a “hotel”.

3. Seller discloses that an STR is an allowed legal use and must provide the Zoning and NUC or STR #. If this option is checked and the property has been used an STR, whether currently or in the past, the Seller must provide to the Buyer prior to the execution of a real estate purchase contract:

   1. The applicable government permit number, such as a nonconforming use certificate number, or STR registration number; and

   2. Tax clearance certificates evidencing payment of general excise taxes and transient accommodation taxes owed to date.

4. Seller discloses that the property being sold is in an STR zoned district but the property has not been used as an STR and therefore does not have any certificates or registration.

While most sales will fall under option #1, like the Lead-Based Paint, this is also a disclosure form that should be completed and signed by the Seller before the Buyer signs.