HOUSE OF REPRESENTATIVES

H.C.R. NO.

50

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

requesting DISCLOSURE OF POTENTIAL LACK OF TITLE INSURANCE TO PURCHASERS of CERTAIN REAL PROPERTY AND CREATION OF A TASK FORCE ON TITLE INSURANCE.

 

 

 


     WHEREAS, nonjudicial foreclosures are likely to increase as an expedited way to collect assessments from non-paying condominium owners; and

 

     WHEREAS, increases in real property tax assessments and increased enforcement of restrictions regarding vacation rentals will likely increase real property tax delinquency sales; and

 

     WHEREAS, buyers in nonjudicial foreclosures and in real property tax delinquency sales may not be guaranteed title insurance; and

 

     WHEREAS, buyers at times have incurred substantial expenses in making purchased properties habitable or sellable and are not warned by the foreclosing seller or the relevant county that title insurance may not be available to them; and

 

     WHEREAS, the lack of title insurance may prevent re-sale of the foreclosed property to recoup the buyer's investment or acquisition of a mortgage to finance further improvements to the property; and thus, without a means to re-invest, the property will likely fall into further disrepair; and

 

     WHEREAS, when the issue of the lack of title insurance was raised to the panel at the real property and financial services seminar at the 2017 Hawaii State Bar convention, no answer to this dilemma was made available by attorneys practicing in the area of real property law; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, the Senate concurring, that the various counties are requested to notify potential buyers at real property tax sales of the potential lack of title insurance, which may prevent future sale or mortgages on those properties; and

 

     BE IT FURTHER RESOLVED that the President of the Senate and the Speaker of the House of Representatives are requested to convene a working group to review problems related to the potential lack of title insurance and to comprise:

 

(1)  The Chair or designee of the Senate Committee on Commerce, Consumer Protection, and Health;

 

(2)  The Chair or designee of the House of Representatives Committee on Consumer Protection and Commerce;

 

(3)  The Chair or designee of the Senate Committee on Judiciary;

 

(4)  The Chair or designee of the House of Representatives Committee on Judiciary; and

 

(5)  A member of the Hawaii State Bar Association section on either collection law or real property and financial services, to be appointed jointly by the President of the Senate and the Speaker of the House of Representatives; and

 

     BE IT FURTHER RESOLVED that the working group is requested to report its findings and recommendations, including any proposed legislation, to the Legislature not less than twenty days prior to the convening of the Regular Session of 2021; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the mayor of each county and President of the Hawaii State Bar Association.

 

 

 

 

OFFERED BY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report Title: 

Real Property