THE SENATE

S.B. NO.

17

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 2

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, and was intended to establish a uniform standard for disclosure for condominium projects, cooperative housing corporations, and other community associations and, in particular, to ensure that buyers would have full disclosure of community or association rules that may impact their use of the property.  Act 186 provided a limitation on the seller's duty to act in good faith and disclose all material facts by providing that if sellers provided buyers the listed items, including unrecorded rules or guidelines issued by entities that manage the association or corporation, the seller would have been deemed to have made all material disclosures required under the statute.

     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 relating to restrictions or conditions 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[,] that the seller has knowledge about, should have knowledge about, is under the seller's control, or should have been under the seller's control, 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.  Any documents subject to section 514B-154.5 shall be considered to be within the seller's 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  Statutory material to be repealed is bracketed and stricken.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.



 

Report Title:

Real Estate; Seller Disclosure Requirements; Required Documentation

 

Description:

Clarifies that the required disclosure of documents relating to restrictions or conditions including unrecorded rules or guidelines by a seller for residential real property that is subject to restrictions or conditions on use applies to documents relating to restrictions or conditions within a seller's actual or constructive knowledge or control and all documents subject to disclosure under section 514B-154.5, Hawaii Revised Statutes.  (SB17 HD2)

 

 

 

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