Report Title:
Leasehold Land; Termination of Rights
Description:
Grants lessees a right of first refusal contingent upon a lessor displaying an objective intent to sell or its acceptance of an offer to purchase.
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THE SENATE |
S.B. NO. |
3196 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to lease to fee conversion.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514C-2, Hawaii Revised Statutes, is amended to read as follows:
"[[]§514C-2[]] Right of
first refusal. [When the leased fee interest in land under a
condominium project or cooperative project or any part thereof is to be sold to]
When a lessor has displayed an objective intent to sell, or has accepted a
written offer to purchase prior to or within two years after the termination of
the lease with any party other than the association of owners or the
cooperative housing corporation, the seller shall first provide the board of
directors of the association of owners or the cooperative housing corporation
with written notice delivered or mailed by registered or certified mail, return
receipt requested, postage prepaid, to any two of the president,
vice-president, or managing agent (if any), of its intent to sell that interest,
together with a complete and correct copy of the purchaser's written offer,
which offer shall contain the full and complete terms thereof. The association
of apartment owners or cooperative housing corporation shall have a right of
first refusal to purchase that leased fee interest for the same price as is
contained in the written purchase offer."
SECTION 2. Section 514C-5, Hawaii Revised Statutes, is amended to read as follows:
"§514C-5 Offer to other prospective
purchasers; time limit. No lessor who has displayed an objective intent
to sell, or who has accepted a written offer to purchase prior to or within two
years after the termination of the lease shall sell the leased fee interest
in any land under a condominium project or cooperative project containing one
or more residential units or any part thereof to any party other than the
association of apartment owners or cooperative housing corporation for that
project until a right of first refusal for the purchase of that interest has
been offered as required by this part and has been rejected in writing by the
board of directors, except in the case of sales to individual condominium unit
lessees or cooperative unit lessees, which shall be subject to the requirements
of section 514C-6.5; provided that an offer made pursuant to sections 514C-2,
514C-3, and 514C-6.5 shall be deemed to be rejected if not accepted in writing
by the board of directors of the condominium project or the cooperative housing
corporation within one hundred twenty days of its receipt of the written notice
from the seller, as evidenced by the return receipts, or if the sale, through
no fault of the seller, has not closed upon the purchase of one hundred per
cent of the interest being sold within one hundred eighty days of receipt by
the board of directors of such written notice, as evidenced by the return
receipts. In the event that closing is delayed due to any fault of the seller,
the deadline for closing shall be extended for a period of time equal to the
delay caused by [[]the[]] seller."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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