HOME EXEMPTION  The first home exemption law was enacted in 1896 by the Republic of Hawaii to provide some tax relief, encourage home ownership and the settlement of land. In 1896, the home exemption amount was $300. Beginning tax year 2024-2025, the home exemption will be $120,000 for homeowners under the age of 65 as well as for homeowners who do not have their birthdate on file. This means that $120,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. For homeowners 65 years and older the home exemption is $160,000. To qualify for this exemption amount, you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed. Property owners with an existing home exemption, with their date of birth on file, do not need to re-apply for the new exemption amounts. The exemption amounts will automatically increase depending on the age of the homeowner. WHO MAY QUALIFY FOR A HOME EXEMPTION? You are entitled to the home exemption if: You own and occupy the property as your principal home "real property owned and occupied as the owner's principal home" means occupancy of a home in the city with the intent to reside in the city. Intent to reside in the city may be evidenced by, but not limited to, the following indicia: occupancy of a home in the city for more than 270 calendar days of a calendar year; registering to vote in the city; being stationed in the city under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with a reported address in the city; Your ownership is recorded at the Bureau of Conveyances, State Department of Land and Natural Resources, in Honolulu on or before September 30 preceding the tax year for which you claim the exemption. In the case of a lease, the document must indicate that the lessee has a lease for residential purposes for a term of five years or more and will pay all property taxes; You file a claim for home exemption online or fill out Form (E-8-10.3) with the Real Property Assessment Division on or before September 30 preceding the tax year for which you claim the exemption. If you file online and do not receive an email confirmation after submission, please contact our office. Property held in a company name, such as an LLC, may not receive a home exemption.  Call the Real Property Tax office at (808) 768-3799 for more information. SINGLE HOME EXEMPTION The law allows just one (1) home exemption; if spouses live apart and own separate homes, each shall be entitled to one-half (1/2) of one exemption or to an exemption apportioned between their respective homes in proportion to the assessed value. IF YOU SELL, RENT MORE THAN TWO BEDROOMS, OR MOVE TO ANOTHER HOME If there is any change which might affect your home exemption eligibility, such as no longer occupying the property as your home, ceasing to own the property, and/or renting more than two bedrooms of the property during the tax year, then you must report the change M-8-10.1 to the Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu. The report must be submitted within 30 days of the change. Failure to file a report within 30 days of any change in status may result in a penalty and additional real property taxes being assessed For more information call the Real Property Tax office at (808) 768-3799, or to file your home exemption online visit https://realproperty.honolulu.gov/exemption/file-exemption/ Please be sure to have you Parcel ID or TMK number available if planning to file online. If you need assistance finding your Parcel ID or TMK number, feel free to email us at info@OnePacificRealty.com

As a result of the recent NAR settlement, buyers must execute a Buyer Representation Contract prior to touring homes with a Realtor. Why am I being asked to sign this? If you’re a homebuyer working with an agent who is a REALTOR®, it means you are working with a professional ethically obligated to work in your best interest. As of August 17, 2024, you will be asked to sign a written buyer agreement after you’ve chosen the professional you want to work with. Here’s what you should know about these agreements:   What is a “written buyer agreement?” What does it do? A written buyer agreement is an agreement between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services.   Why am I being asked to sign an agreement? Written buyer agreements became a nationwide requirement for many real estate professionals as a part of the National Association of REALTORS®’ proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.   Are these agreements new? In some places, yes. Many states have required them for years, while some have not. As a result, it is entirely possible you or others you know have not used them in the recent past. Regardless, they are now a nationwide requirement for many real estate professionals.   Are these agreements negotiable? Yes! You should feel empowered to negotiate any aspect of the agreement with your real estate professional, such as the services you want to receive, the length of the agreement, and the compensation, if any. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended or a range. Only sign an agreement that reflects what you have agreed to with your real estate professional.   How do I benefit from these agreements? These agreements clearly lay out what services you (as a homebuyer) expect your real estate professional to provide, and what your real estate professional will be paid. These agreements make things clear and reduce any potential confusion at the outset of your relationship with your real estate professional.   When do I need to sign an agreement? You will be asked to enter into a written buyer agreement with your real estate professional before “touring” a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.   Does this mean I have to pay my real estate professional out of pocket? Not necessarily. While you are responsible for paying your real estate professional as outlined by your agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.   Do agreements dictate a specific type of relationship I need to have with my real estate professional? No—you are allowed to enter into any type of business relationship with your real estate professional allowed by state law where you live.   Can I change or exit an agreement? Yes. You and your real estate professional can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the agreement and speak with your real estate professional if you would like to change or exit your agreement.   Please visit facts.realtor for more information.   If you have any questions, or would like to view a copy of our Buyer Representation Contract, email us at info@OnePacificRealty.com.