Report Title:

Real Property; Disclosure

 

Description:

Clarifies disclosures required of sellers of residential real property (HB79 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

79

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to real property disclosures.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 508D-3, Hawaii Revised Statutes, is amended to read as follows:

"508D-3 Exemptions. This chapter shall not apply to the following sales of residential real property:

(1) Sale to a co-owner;

(2) Sale to a spouse, parent, or child of the seller;

(3) Sale by devise, descent, or court order;

(4) Sale by operation of law, including, but not limited to, any transfer by foreclosure, bankruptcy, or partition, or any transfer to a seller's creditor incident to a deed (or assignment) in lieu of foreclosure, workout, or the settlement or partial settlement of any preexisting obligation of a seller owed a creditor and any later sale of residential real property by such creditor;

(5) Sale by a lessor to a lessee resulting from conversion of leased land to fee simple;

(6) Initial sale of new residential real property pursuant to chapter 484 under a current public offering statement or chapter 484 exemption;

[(7) Sale where the seller is an absentee owner who has complied with the requirements of section 508D-10;

(8)] (7) Sales of condominium apartments accompanied by delivery of an unexpired public report; or

[(9) Sale] (8) Sales of time share interests as defined under chapter 514E."

SECTION 2. Section 508D-10, Hawaii Revised Statutes, is repealed:

["508D-10 Absentee owners and disclosure. A seller who has not lived in the residential real property for at least one-hundred-eighty days prior to the date of receiving a real estate purchase contract may notify the buyer in writing that the seller does not have the requisite personal knowledge to make accurate disclosures about the residential real property, or provide a statement subject to section 508D-9(a)(4). Thereafter the buyer may elect to:

(1) Substitute an inspection report by a home inspector, licensed contractor, or licensed appraiser covering the same matters as would have been included in a disclosure statement at the buyer's expense; or

(2) Provide the seller written notification that the buyer waives the applicability of this chapter."]

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.