Report Title:
Condominiums; Nonjudicial Foreclosures; Common Expenses
Description:
Establishes the time at which the purchaser of an apartment at a judicial or nonjudicial foreclosure becomes responsible for the owner's share of common assessments and expenses; creates exceptions. (SB373 HD2)
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THE SENATE |
S.B. NO. |
373 |
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TWENTY-SECOND LEGISLATURE, 2003 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUM PROPERTY REGIMES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514A-90, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except as provided in subsection (g), when the mortgagee of a mortgage of record or other purchaser of an apartment obtains title to the apartment as a result of foreclosure of the mortgage, the acquirer of title and the acquirer's successors and assigns shall not be liable for the share of the common expenses or assessments by the association of apartment owners chargeable to the apartment which became due prior to the acquisition of title to the apartment by the acquirer. The unpaid share of common expenses or assessments shall be deemed to be common expenses collectible from all of the apartment owners, including the acquirer and the acquirer's successors and assigns. The mortgagee of record or other purchaser of the apartment shall be deemed to acquire title and shall be required to pay the apartment's share of common expenses and assessments beginning:
(1) Thirty-six days after the order confirming the sale to the purchaser has been filed with the court;
(2) Sixty days after the hearing at which the court grants the motion to confirm the sale to the purchaser;[or]
(3) Thirty days after the public sale in a nonjudicial power of sale foreclosure pursuant to section 667-5; or
[(3)] (4) Upon the recording of the [deed,] instrument of conveyance,
whichever occurs first[.]; provided that the mortgagee of record or other purchaser of the apartment shall not be deemed to acquire title under paragraph (1), (2), or (3), if transfer of title is delayed past the thirty-six days specified in paragraph (1), the sixty days specified in paragraph (2), or the thirty days specified in paragraph (3), when a person who appears at the hearing on the motion or a party to the foreclosure action requests reconsideration of the motion or order to confirm sale, objects to the form of the proposed order to confirm sale, appeals the decision of the court to grant the motion to confirm sale, or the debtor or mortgagor declares bankruptcy or is involuntarily placed into bankruptcy. In any such case, the mortgagee of record or other purchaser of the apartment shall be deemed to acquire title upon recordation of the instrument of conveyance."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval; provided that the amendments made to section 514A-90(b), Hawaii Revised Statutes, by this Act shall not be repealed when section 514A-90 is reenacted on December 31, 2003, pursuant to section 4 of Act 39, Session Laws of Hawaii 2000.