Selling or Breaking a Lease in Hawaii Before You Move

Written by a couple who've made this move both directions.

Disclaimer: This is general information, not legal or tax advice. Please consult with a Hawaii landlord-tenant attorney or CPA for your specific situation.

When we decided to make the move from Hawaii back to the continent, we did not have the worry of having to break a lease. That is not always the case for many people who decide to relocate. Whatever the reasons, sometimes it may require breaking a lease in Hawaii. Renters can face lease-break penalties while home owners may deal with longer sale timelines and a nonresident tax withholding.

What will be covered below includes renter lease-break rules and exceptions as well as what selling a home in Hawaii may look like timeline and cost-wise, and HARPTA (a tax quirk) that many sellers are surprised by.

Also read: Signs It’s Time to Leave Hawaii

Quick Answer Box

Anytime renters break a lease early in Hawaii, they are generally liable for rent until a new tenant is found or the lease term comes to an end. There are legal exceptions such as military orders, domestic violence, or uninhabitable conditions. For homeowners, selling a home before moving can take anywhere from 70-100 or more days on the market plus closing. If selling a home as a non-resident, a 7.25% HARPTA withholding will occur on the sale price.

Key Takeaways

• Hawaii tenants who break a lease without a legal exception remain liable for rent until the unit is re-rented or the lease term ends
• Legal exceptions to break a lease penalty-free include active military PCS/deployment orders, domestic violence documentation, and uninhabitable living conditions
• Homes in Hawaii are currently taking about 70–100+ days to sell depending on island and property type, including another 30–45 days to close
• Average Hawaii realtor commission are around 5.5%. It may be negotiable depending on market conditions
• HARPTA requires buyers to withhold 7.25% of the sale price when the seller is a nonresident at closing. Timing your sale before or after your move matters

Breaking a Lease in Hawaii: What the Law Actually Says

The default rule in Hawaii is that a tenant who breaks a lease early and doesn’t have a qualifying legal reason to do so is still liable for the rent for the remainder of the lease term. Landlords are legally required to make reasonable efforts to re-rent the unit.

For example, if it takes the landlord 45 days to find a new tenant, then the outgoing tenant is still responsible for those 45 days for rent as well as any advertising or re-leasing fees (if stated in the lease). You may also want to research the Hawaii Revised Statutes that govern tenant protections (Chapter 521 (521-37, 521-42, 521-63, 521-64, 521-67, and 521-72)).

Legal Reasons You Can Break a Lease Without Penalty

There are legal reasons in which you can break a lease without a penalty. These include:

• Active military orders: Under the federal Servicemembers Civil Relief Act and Hawaii’s Act 19 (2021), any servicemember with PCS or 90+ day deployment orders can terminate with a 30 day written notice leases of one year or less or 15 days (month-to-month).
• Domestic violence: Tenants or a household member who has experienced domestic violence, sexual assault, or stalking within the prior 90 days can terminate the lease with a 14-day written notice with documentation (a police report or protective order), with termination effective no more than 104 days after the incident.
• Uninhabitable conditions: If the unit has serious health/safety violations and the landlord fails to fix them within about a week of written notice, the tenant may terminate without penalty; no notice is required if the condition poses an imminent danger.

If You Don’t Qualify for an Exception

Give proper written notice and help the landlord re-rent quickly. Some landlords will accept this as a swap for one-time liability. You can also try to negotiate a lease-break fee in writing versus than open-ended rent liability.

It’s also worth asking your landlord if they’ll accept a flat lease-break fee instead of holding you liable for actual days vacant. This may be possible in a landlord-friendly rental market.

Selling a Home in Hawaii Before You Move

If you own a home and want to sell it before moving from Hawaii, there are some things to keep in mind. For one, how long your home could remain on the market. The statewide median days on market is around 73-104 days depending on the source and island.

A current market snapshot includes statewide median days on the market being around 73-104 days depending on source and island. That does not include 30-45 days to close. Oahu has seen as low as 17-28 days for well-priced single-family homes while condos take a bit longer at 56 days.

What It Costs to Sell

• The average Hawaii realtor commission is roughly 5.5% (versus the more commonly cited mainland 5–6%), split between listing and buyer’s agents
• For example, on a $750,000 sale, that’s about $41,000 in commission alone
• Total closing costs for Hawaii sellers typically run 5–10% of the sale price. Transfer tax, escrow fees, HOA payoff items, and commission are also included.
• Mention FSBO as an option. Selling without a realtor is legal in Hawaii but requires mandatory seller disclosures (HRS § 508D), licensed escrow, and HARPTA compliance regardless of using an agent or not

The Tax Surprise: HARPTA Withholding

Many people are surprised by HARPTA if it applies to them when selling their home. HARPTA stands for Hawaii Real Property Tax Act. If you’re no longer a Hawaii resident at the time your home sale closes, the buyer is legally required to withhold 7.25% of your gross sale price. That amount is then sent to the Hawaii Department of Taxation.

For example, a $750,000 sale as a non-resident means that $54,375 gets withheld at closing, even if your actual tax liability is much lower. Keep in mind that this is not a final tax bill. It is a prepayment. Sellers can file Hawaii Form N-15 (or N-288C for a faster refund) after closing. That will recover the difference between what was withheld and what is actually owed.

Timing your home sale relative to your actual move is important because if you’re still a Hawaii resident on the closing date, HARPTA doesn’t apply.

Renting Out Your Hawaii Home Instead of Selling

Another option is to rent out your home in Hawaii instead of selling it. This will require you to be an out-of-state landlord. However, you do have the option of hiring a property management company that will handle rent collection, maintenance issues, screening potential tenants, and much more. Property management services tend to cost 8-12% of the monthly rent.

If you ever do decide to sell your home in the future, the same HARPTA rules will apply when you sell as a non-resident.

If You’re Also Shipping Belongings Off-Island

After you’ve settled your lease or your home sale is underway, the next step is shipping your car and/or household goods off-island. There are some logistics to work through and costs to consider. Read the article below to help guide you with shipping your car and belongings from Hawaii.

Check out: Shipping Your Car and Belongings From Hawaii: What It Costs

Frequently Asked Questions

Can I break my lease early in Hawaii if I’m moving off-island?

You can break a lease early without penalty if a legal exception applies such as military orders, domestic violence, or uninhaibitable conditions). Otherwise, you will remain liable for rent until the unit is re-rented or the lease ends.

How long does it take to sell a house in Hawaii?

On average it takes between 70-100+ days on the market plus an additional 30-45 days to close. This varies by island and by property type.

What is HARPTA and does it apply to me?

HARPTA applies to nonresident sellers. 7.25% of the gross sale price of your home sale is withheld at closing.

How much does it cost to sell a home in Hawaii?

It typically ranges from 5-10% of the sale price of your home between realtor commission, transfer tax, and closing costs.

Can I sell my Hawaii home without a realtor?

Yes. FASBO is legal but the seller disclosures, escrow, and HARPTA rules still apply.

What happens if I break my lease and can’t pay the remaining rent?

You will be liable for the gap period or until lease ends when breaking a lease early.

Final Thoughts

Breaking a lease to move from Hawaii can cause a major financial burden. If it is at all possible, it is best to time your move after your lease comes to an end. It’s understandable if breaking a lease early cannot be helped do to an emergency. However, keep in mind that you will be liable for rent until the unit is re-rented or the lease ends.

For home sellers, timing is also important. Pay attention to HARPTA and the 7.25% of the gross sale price of your home if you are a nonresident when the sale is made. Remembering these possible scenarios can help you make better decisions for when the time coes to plan your move from Hawaii.