Report Title:
Real Estate Sales; Licenses; Exemptions
Description:
Exempts a time share interest owner from licensing under chapter 467 when owner refers a prospective buyer to the developer, sales agent, or resale agent of the owner's time share plan and receives a fee of not more than $1,000; clarifies roles of owner, developer, sales agent, and resale agent. (SD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
16 |
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TWENTY-FIRST LEGISLATURE, 2001 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
relating to real estate brokers and salespersons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 514E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§514E- Time share interest owner referrals. (a) An owner of an interest in a time share plan duly registered under this chapter who is not licensed under chapter 467 and provides the name and address of a prospective purchaser or otherwise refers a prospective purchaser of an interest in the same time share plan to a developer, sales agent, or resales agent of the time share plan shall be exempt from licensing requirements under chapter 467; provided that:
(1) Any fee paid to the owner shall consist of and not exceed $1,000 per project in credit or other non-monetary compensation during any twelve-month calendar period;
(2) The owner shall not advertise or promote services provided to developers, sales agents, or resales agents under this section;
(3) The owner's role is limited to providing the name and address of the prospective purchaser and the owner shall not make any oral or written statement to the prospective purchaser that could be construed as a promotion or endorsement;
(4) The developer, sales agent, or resale agent shall be responsible for providing the prospective purchaser with true and correct information regarding the time share plan. Any misrepresentations made by an owner to a prospective purchaser shall be corrected by the developer, sales agent, or resale agent; and
(5) The developer, sales agent, or resale agent shall provide the owner who received a referral fee with a written receipt that identifies and provides the value of the compensation given.
(b) Nothing in this chapter or in chapter 467, including section 467-14(14), shall be construed to prohibit or prevent a developer, sales agent, or resale agent from entering into a transaction with a time share interest owner pursuant to this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.