Report Title:

Condominiums; Managing Agent

Description:

Requires a managing agent wishing to lease part of the managed property to obtain a third party appraisal and prohibits its co-employment of an AOAO employee. Requires the consideration of a minimum of 2 bids for the property management contract.

THE SENATE

S.B. NO.

983

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CONDOMINIUMS.

 

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

SECTION 1. Act 164, Session Laws of Hawaii 2004, section 2, is amended as follows:

1. By amending subsection (c) of section    -132, Hawaii Revised Statutes, to read:

"(c) Every managing agent shall be considered a fiduciary with respect to any property managed by that managing agent. Consistent therewith:

(1) If a managing agent or any of its affiliated entities desires to lease any part of the managed property, the managing agent shall obtain a third-party professional real estate appraisal that determines the current lease value of the subject property prior to the approval of the proposed lease; and

(2) A managing agent and any of its affiliated entities shall not employ an employee of the association."

2. By amending section    -134, Hawaii Revised Statutes, to read:

"§   -134 Management and contracts; developer, managing agent, and association. (a) Any developer or affiliate of the developer or a managing agent, who manages the operation of the property from the date of recordation of the first unit conveyance until the organization of the association, shall comply with the requirements of sections    -72,    -103, and     -149.

(b) The developer or affiliate of the developer, board, and managing agent shall ensure that there is a written contract for managing the operation of the property, expressing the agreements of all parties including, but not limited to, financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments. Copies of the executed contract and any amendments shall be provided to all parties to the contract. Prior to the organization of the association, any unit owner may request to inspect as well as receive a copy of the management contract from the entity that manages the operation of the property.

(c) A developer, affiliate of the developer, or board shall consider a minimum of two bids from licensed real estate managing agents prior to executing a contract for the management of the operation of the property."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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