What are the two recording systems used in Hawaii?

Hawaii utilizes two primary recording systems for property transactions: the Land Court System and the Regular System.

The Land Court System is unique to Hawaii and provides a method for the registration of land titles that ensures a state guarantee of ownership. This system is designed to reduce disputes over ownership and provides a clear record of land ownership, which can simplify the process of buying and selling property.

The Regular System, on the other hand, is akin to the system used in other states and involves recording documents related to property transactions such as deeds and mortgages. This system does not guarantee title but relies on a recorded chain of title to establish ownership.

The correct answer highlights the importance of understanding how these two systems function, as they govern the recording of real estate transactions in Hawaii, each serving different purposes and providing varying levels of title security to property owners. Recognizing the differences between the Land Court and Regular Systems is crucial for anyone involved in real estate in the state, including Mortgage Loan Originators.