Report Title:
Real Property; Title Insurance
Description:
Requires a title insurer to notify a homeowners' association when real property sold is found to be a part of the association. Requires the title insurer to collect and remit the transfer fee to the association and provide a copy of the conveyance document to the association.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2580 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to title insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is not uncommon in Hawaii for title insurance companies to notify the homeowners' association when there is a sale of a property that belongs to a homeowners' association and to collect applicable fees to be disbursed by escrow. Among the escrow fees that are assessed for the sale of a property that belongs to a homeowners' association are:
(1) A homeowners' association statement fee, which is charged by the homeowners' association to issue their statement reflecting the current status of dues paid, pending assessments and any requirements for transfer to a buyer;
(2) A transfer fee, which is assessed by the homeowners' association for condominiums to update their records to reflect a new property owner; and
(3) A document fee, which is assessed by the homeowners' association for condominiums for providing any requested homeowners' association documents.
The purpose of this Act is to require title insurance companies who conduct title and escrow services to notify a homeowners' association when real property belonging to the association is sold, collect and remit the transfer fee, and provide a copy of the conveyance document to the association.
SECTION 2. Chapter 431, article 20, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§431:20- Notification to homeowners' association. (a) In a title insurer's search and examination of title, if the real property that is sold is part of a homeowners' association, the title insurer, within ten days after performance of any escrow, shall do the following:
(1) Provide the homeowners' association with a written statement with the name and address of the new real property owner and the address of the real property;
(2) Collect the transfer fee and remit it to the homeowners' association; and
(3) Provide to the homeowners' association a copy of the conveyance document for the real property.
(b) Failure to comply with this section shall be cause for a homeowners' association to file a complaint with the attorney general. Upon the filing of a complaint under this section, the attorney general shall investigate the complaint, and if the attorney general finds the title insurer in noncompliance, then the attorney general shall take any action necessary to compel compliance with this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2006.
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INTRODUCED BY: |
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