Report Title:
Condominiums, Common Expenses, When Liable For
Description:
Expands start date for transfer of condominium unit that triggers ownership and liability for the unit's share of common expenses and assessments to include recordation of the mortgagee's affidavit of non-judicial foreclosure.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1072 |
TWENTY-SECOND LEGISLATURE, 2003 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to c1arify section 514A-90(b), Hawaii Revised Statutes, relating to the time at which the mortgagee of record or other purchaser of a condominium unit in a foreclosure action shall be deemed to acquire title to the unit. Presently, the statute sets time deadlines based on: (1) the hearing date on the order confirming sale; (2) the entry of the order confirming sale; and (3) the recording of the deed. The hearing and the order, however, only occur in a judicial foreclosure. There are no such hearings and the orders in a non-judicial or power of sale foreclosure. As there is sometimes a substantial delay between the recording of the affidavit of non-judicial foreclosure, which is required within thirty days of the date of sale, and the recording of the mortgagee's conveyance deed, the association potentially is prevented from collecting common expenses and assessments during the period between the recording of the affidavit and the deed. This Act clarifies that, for the purpose of determining liability for the common expenses and assessments, the mortgagee of record or other purchaser of the unit shall be deemed to acquire title upon the earlier to occur of the recordation of the affidavit or the deed in a non-judicial foreclosure action.
SECTION 2. Section 514A-90, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except as provided in subsection (g), when the mortgagee of a mortgage of record or other purchaser of an apartment obtains title to the apartment as a result of foreclosure of the mortgage, the acquirer of title and the acquirer's successors and assigns shall not be liable for the share of the common expenses or assessments by the association of apartment owners chargeable to the apartment which became due prior to the acquisition of title to the apartment by the acquirer. The unpaid share of common expenses or assessments shall be deemed to be common expenses collectible from all of the apartment owners, including the acquirer and the acquirer's successors and assigns. The mortgagee of record or other purchaser of the apartment shall be deemed to acquire title and shall be required to pay the apartment's share of common expenses and assessments beginning:
(1) Thirty-six days after the order confirming the sale to the purchaser has been filed with the court;
(2) Sixty days after the hearing at which the court grants the motion to confirm the sale to the purchaser; [or]
(3) Upon recordation of the mortgagee's affidavit of non-judicial foreclosure in a foreclosure under section 667-5 or part II of chapter 667; or
[(3)] (4) Upon the recording of the deed,
whichever occurs first."
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.
INTRODUCED BY: |
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