514E-9 Disclosure statement. (a) Any offering of a time sharing plan to the public shall disclose:

(1) The name and address of the developer and of the time share units;

(2) The name and address of the plan manager, if any, and a description of the plan manager's responsibilities and authority;

(3) A description of the time share units, including the developer's schedule for completion of all buildings, units, and amenities and dates of availability;

(4) If the time share plan is located in a condominium property regime, a description of the project and any pertinent provisions of the project instruments;

(5) Any restraints on the transfer of the buyer's time share interest in the time share units or plan;

(6) Whether the time share plan is a time share ownership plan or a time share use plan, along with a description of the rights and responsibilities under said plan;

(7) A statement that there is a seven-calendar-day period of mutual rescission;

(8) A statement that pursuant to section 514E-11.3, every sale or transfer, made in violation of this chapter is voidable at the election of the purchaser;

(9) Notice of any liens, title defects or encumbrances on or affecting the title to the units or plan;

(10) Notice of any pending or anticipated suits that are material to the time share units or plan, of which the developer has, or should have, knowledge;

(11) The total financial obligation of the purchaser, which shall consist of:

(A) A statement that the purchaser is obligated to pay the initial price stated in the purchaser's purchase agreement; and

(B) A list or description of any additional charges to which the purchaser may be subject;

(12) An estimate of the dues, maintenance fees, real property taxes, and similar periodic expenses, and the method or formula by which they are derived and apportioned;

(13) The disclosure statement under subsection (d), if applicable; and

(14) Other disclosures required by the director, as provided by rules adopted pursuant to chapter 91.

(b) The requirements of this section shall not apply to the following transactions:

(1) Any transaction pursuant to order of any court;

(2) Any disposition by a government or governmental agency;

(3) Normal hotel operations; or

(4) Any gratuitous transfer.

(c) A developer or sales agent shall promptly amend or supplement the disclosure statement to report any material change in the information required by this section.

(d) If all the time share units are located outside the State, the disclosure statement shall contain the following statement:

 

"BECAUSE THE TIME SHARE UNITS OF THIS TIME SHARE PLAN ARE LOCATED OUTSIDE THE STATE OF HAWAII, THE PLAN MANAGER IS EXEMPT FROM REGISTRATION UNDER HAWAII'S TIME SHARE LAW, AND HAWAII'S TIME SHARE LAW PROVIDES NO PROTECTIONS TO PURCHASERS WITH RESPECT TO THE PLAN MANAGER."

 

[L 1980, c 186, pt of 1; am L 1981, c 81, 4; am L 1985, c 114, 3; gen ch 1985; am L 1988, c 65, 2; am L 2013, c 49, 1; am L 2014, c 70, 2]

 

 

Previous Vol12_Ch0501-0588 Next