Requires that a grantee of a unit in a planned community association be jointly and severally liable with the grantor for all unpaid assessments against the grantor.

A BILL FOR AN ACT

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

"§421J-   Voluntary conveyance of unit (a) Except as provided in subsection (b), in the case of a voluntary conveyance, the grantee of a unit shall be jointly and severally liable with the grantor for all unpaid assessments against the grantor for the grantor's share of the common or other expenses due under the declaration up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee.

(b) Any grantor or grantee is entitled to a statement from the board, either directly or through its manager, stating the amount of the unpaid assessments against the grantor. Except for the amount of a subsequently dishonored check disclosed in the statement that the board received within the thirty-day period immediately prior to the date of the statement, the grantee is not liable for and the unit conveyed is not subject to a lien for any unpaid assessments against the grantor in excess of the amount set forth in the statement."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.