SENATE

S.B. NO.

17

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to real estate seller disclosure.

 

 

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

 


     SECTION 1.  The legislature finds that the Hawaii real estate seller disclosure law, codified as chapter 508D, Hawaii Revised Statutes, imposes a duty upon sellers to act in good faith and disclose in writing all material facts affecting the seller's property that are within the knowledge or control of the seller.  Act 186, Session Laws of Hawaii 2013, amended chapter 508D, Hawaii Revised Statutes, by, among other things, requiring sellers to provide buyers with all documentation relating to any restrictions or conditions associated with the seller's property, including unrecorded rules or guidelines.  However, these unrecorded rules or guidelines may be outside of the knowledge or control of the seller.

     The legislature further finds that consumer interests are adequately protected by the existing statutory duty imposed on sellers to act in good faith and fully and accurately disclose all material facts within a sellers' knowledge or control.  Requiring sellers to specifically provide buyers with unrecorded rules or guidelines may create unintended confusion in the seller disclosure law and is therefore unnecessary.

     Accordingly, the purpose of this Act is to clarify that the required disclosure of documents by a seller for residential real property that is subject to restrictions or conditions on use applies to documents that are within a seller's knowledge or control.

     SECTION 2.  Section 508D-3.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  If the residential real property is otherwise subject to restrictions or conditions on use, either because of covenants contained in the deed for the property or because of another recorded document, the disclosure shall also include all documentation relating to any restrictions or conditions[, including but not limited to any unrecorded rules or guidelines that may have been issued by any entity responsible for enforcing those restrictions or guidelines.] within the seller's knowledge or control."

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  Statutory material to be repealed is bracketed and stricken.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


     SECTION 4.  This Act shall take effect on November 1, 2015.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Real Estate; Seller Disclosure Requirements; Required Documentation

 

Description:

Clarifies that the required disclosure of documents by a seller for residential real property that is subject to restrictions or conditions on use applies to documents that are within a seller's knowledge or control.  Takes effect on November 1, 2015.

 

 

 

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