Report Title:

Planned Community Associations; Right of Recision

Description:

Gives prospective purchaser of property in a planned community right to receive and review association declaration and association documents. Gives prospective purchaser right to cancel sales contract, without cause, within 15 days after receipt of declaration and documents.

HOUSE OF REPRESENTATIVES

H.B. NO.

1935

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to planned community associations.

 

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

SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§421J- Delivery of declarations and association documents to prospective purchaser; right to cancel. (a) Upon the execution of a sales contract for the purchase of property in a planned community, the seller shall provide the prospective purchaser with copies of the declaration and association documents, as amended, as those terms are defined in section 421J-2, and receive a receipt from the prospective purchaser with a complete list of all documents delivered.

(b) Within fifteen days of the date of the receipt, the prospective purchaser may cancel the sales contract, without cause, upon the delivery of a written notice to cancel the sales contract. Delivery shall be in person or by post, return receipt requested. Upon a timely cancellation, the sale contract shall be void and of no further force or effect, and the prospective purchaser shall receive any deposit the prospective purchaser made pursuant to the sales contract, less any reasonable escrow fee accrued."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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