Legal Question in Real Estate Law in Hawaii

Re: Default on offer to buy

It is difficult to give an absolute answer without viewing your DROA, Escrow instructions, and without knowing exactly what you agreed to. So, on this one, I would advise seeking the legal assistance. However, I hope this information will help you on your way:

Generally, in contracts for the sale of land, payment or conveyance at the exact time specified in the Deposit, Receipt, Offer, and Acceptance (DROA) is not regarded as "of the essence" because delays are frequent in these transactions, and it is the custom of people to overlook them, even though they may have stated in advance that they would not.

Failure to indicate within the prescribed period that financing is obtained is an indication that the buyer cannot qualify for the same with a lending institution, or does not intend to go through with the contract.

When a contracting party discovers the other party has abandoned a contract, he has as a remedy the right to conclude that the latter party intends not to perform his part of the bargain and treat the contract as a nullity.

So... Generally, I would say that your inability to secure financing, if in good faith, is not a material breach of the Contract and the Seller should not be entitled to your Deposit.