Many people dream of one day purchasing their dream home on the beach. That dream is even more splendid when the beachfront home to purchase is in Hawaii.
Hawaii has some of the most beautiful beaches in the world and, therefore, some of the most desirable beachfront real estate. Beachfront homes in Hawaii sell for millions of dollars and, often, the majority of the purchase price is reflective of the land size and situation.
In Kailua, Oahu, where our Home Shoppe Hawaii office is located, beachfront properties, on white sandy Kailua and Lanikai Beaches, range from over $3M to upwards of $20M, depending on lot size and what sort of house is on the lot. Even vacant lots, beachfront in Kailua, can sell for many millions of dollars.
SHORELINE SURVEYS & CERTIFICATIONS
One of the more important considerations when purchasing beachfront property, anywhere in Hawaii, is determining where the shoreline is. The location of the shoreline will not only affect the size and value of the property, but your ability to build, as there are setbacks required. When you locate the shoreline, you will also learn where your property ends and the public beach begins.
According to Hawaii Revised Statues 205A-1 as currently written:
“Shoreline” means the upper reaches of the wash of the waves, other than storm and seismic waves, at high tide during the season of the year in which the highest wash of the waves occurs, usually evidenced by the edge of vegetation growth, or the upper limit of debris left by the wash of the waves.
To accurately determine the official shoreline on your beachfront or oceanfront property, one must first obtain a Shoreline Survey and then get that survey reviewed and certified by the Hawaii Department of Land and Natural Resources (DNLR). The “Shoreline Certification” is a certification by the DNLR of the State of Hawaii of the survey which measures the high-tide line, as specified in the statute above, and officially determines the shoreline of a property. More information on obtaining a Shoreline Certification can be found here. Since the survey must be done in the season of the year in which the highest wash of the waves occur and must take into account many days of measurement, you may have to wait several months to obtain the Certification for a particular piece of beachfront property.
If you are considering SELLING a beachfront property on Oahu:
It may be wise, in some situations, to obtain a Shoreline Survey Certification prior to listing the property, if the property is such that it seems that a Buyer would reasonably insist upon one. Some will, depending upon the property. And also, depending upon exactly where on the property the improvements are located, in relation to the shoreline, it could be difficult for a Buyer to obtain title insurance or homeowner’s insurance without one.
The problem in obtaining the Certification in advance is that the Certification will age during a lengthy listing period. Many beachfront homes take one or more years to sell. A Shoreline Certification is only good for a year. If the Certification gets too old, a Buyer may not accept the survey and it will have to be updated. However, getting one in advance could save you from a very long escrow period, due to waiting on the survey, or losing a Buyer who does not want to wait for one.
A Seller of Oahu oceanfront or beachfront real estate will also want to make sure to include the HAR Standard Oceanfront Property Addendum in any Purchase Contract accepted. This Addendum has been drafted to specifically cover some of the issues with shorelines and shoreline setbacks, as well as some of the issues that arise with flood insurance and seawalls.
If you are considering PURCHASING a beachfront property on Oahu:
It may be wise to ask for a Shoreline Survey and possibly also a Certification, prior to purchasing the property. Beach lots will require a minimum of a 20-40 foot setback from the shoreline, depending upon the size and dimensions of the lot. Most lots have the standard 40 foot setback from the shoreline. Some lots may require more than 40 feet, depending upon other covenants and restrictions.
However, many homes were built long ago and are no longer 40 feet from the shoreline. This is due to erosion of the land and beach, or possibly, the homes were built prior to the current shoreline and setback laws and are grandfathered in.
Besides erosion of a beach, there can also be accretion of the shoreline where, over time, sediment is redeposited enchancing the shoreline. Another form of accretion is where volcanoes create more land mass than orginally existed, but I definitely would NOT recommend purchasing oceanfront property anywhere where volcanic accretion could ever be an issue. Most of the shorelines and beaches in Hawaii are constantly changing. The more usual issue is erosion, versus accretion.
A problem can arise with the shoreline setbacks if you want to tear down the house you are purchasing to rebuild. If the shoreline has eroded and changed too much, you may not be able to build in the same spot, and may have to build further back. If the shoreline has eroded and the home is too close to the shoreline, you may also have problems getting insurance on the property.
A Shoreline Survey and possibly, also a Shoreline Certificaton should be considered whether the property is beachfront or oceanfront. It is also important to know your shoreline if the property is on a cliff above the ocean, or if the property has a sea wall, or rocky frontage.
Here is a good resource on Purchasing a Beachfront Property in Hawaii.
If you have more questions about buying or selling a beachfront home, please call Yvonne Ahearn, Principal Broker of Home Shoppe Hawaii at 808-721-8088.
~ Aloha!