Selling Hawaii Property Held in a Trust or Company: What Title Needs
Updated: 3 days ago
When a Hawaii property is owned through a trust, an LLC, or a family corporation, the sale often stalls on paperwork long before it reaches a buyer. The title company must see proof that the person signing has the authority to sell, so gather the trust or company documents before listing.
Key takeaways
A title company must see proof that the person signing has the authority to sell.
A trust sale usually needs the trust documents and proof of who the current trustee is.
A company sale usually needs an operating agreement or bylaws, a resolution, and good standing with the State.
Gathering these papers before listing keeps escrow from stopping in the middle of a sale.
Why do sales of property held in a trust or company stall?
Entity owned property carries its own problem set. A title company needs proof that the person signing has the authority to sign. That can mean a signed operating agreement, a corporate resolution, bylaws, or a certificate of good standing. When those documents are missing, unsigned, or name the wrong officer, title will not clear and the listing cannot move forward.
Maile Woodhall saw this on a South Kona listing in 2026. The owning company's operating agreement was unsigned, and its records named the wrong officer. The company's attorney was unavailable. A corporate resolution was prepared and signed, then delivered to the title company, which approved the transaction.
What the title company asks for
For a trust, the title company usually asks for the trust document or a short certification of trust, and proof of who the trustee is today. If the first trustee has died or stepped down, it may also ask for the papers that name the successor trustee.
For an LLC or a corporation, it usually asks for the articles, the operating agreement or bylaws, and a resolution that approves the sale and names who may sign. It may also ask for a certificate of good standing from the Business Registration Division of the Hawaiʻi Department of Commerce and Consumer Affairs. A company that has fallen behind on its annual filings may need to catch up first.
What to do before listing
Sellers save weeks by starting with the paperwork. Find the trust or company documents. Confirm who has the power to sign today, not who had it when the papers were written. Ask the escrow company for a preliminary title report early, so any gap shows up before a buyer is waiting. Bring in the trust's or company's attorney for anything that needs a legal opinion or a new document.
Review the title report at the start of a listing, and keep the escrow officer, the seller, and the seller's attorney on the same page until title is clear.
Taxes and withholding to plan for
When the seller is not a Hawaiʻi resident, escrow withholds 7.25 percent of the sale price under the Hawaiʻi Real Property Tax Act, known as HARPTA. It is a prepayment toward tax, not the final tax, and the seller can file for a refund of any excess. How this applies to a trust or a company depends on how it is set up, so ask a tax professional before the home goes on the market.
Common questions
What documents are needed to sell a Hawaii property held in a trust?
A title company usually asks for the trust document or a certification of trust and proof of who the current trustee is. If the trustee has changed, it may also ask for the papers that name the successor trustee.
Can an LLC sell a Hawaii property if its paperwork is out of date?
Usually not until the paperwork is fixed. The title company needs to see who has the authority to sign, and it may ask for a certificate of good standing from the State. An agent who spots the gap before listing saves the seller time in escrow.
Family and legacy land
This comes up often on legacy and family held land in Kona, where property has passed through generations and the entity paperwork was set up decades ago and never revisited. Sellers in that position frequently do not learn there is a problem until an agent has already listed the property and escrow stops.
This article is general information, not legal or tax advice. Rules can change, so confirm the details with an attorney, a tax professional, and the escrow company.
Related guides: Selling a home in Kona; What is my Kona home worth?; How to Sell a Luxury Home in Kona: A Listing Agent's Guide; Listing a House in Kona: Pricing, Preparation, and Timing; Selling a Luxury Home in Kona: Pricing, Reach, and Presentation.
About the author: Maile Woodhall (pronounced Miley) is a licensed Hawaiʻi REALTOR (RS-88019) with The Agency Team Hawaii, eXp Realty (RB-21841), born and raised in Kona. Questions? Call or text (808) 482-5800.
Last updated: October 2026.
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