Report Title:

Rental Agreement; Applicability After Foreclosure

Description:

Makes a mortgagee in possession or purchaser of residential rental property that has been foreclosed upon subject to a rental agreement between the previous landlord and a tenant.

HOUSE OF REPRESENTATIVES	H.B. NO.	525
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to address the situation of a residential tenant after a foreclosure of the tenant's rental unit.  More specifically, this Act subjects the mortgagee in possession or purchaser of the rental unit to the rental agreement between the former landlord and tenant until the agreement expires.

     SECTION 2.  Section 521-45, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Unless otherwise agreed, a landlord who [conveys]:

(1) Conveys premises [which] that include a dwelling unit subject to a rental agreement in a good faith sale to a person not connected with the landlord and discloses, in writing, in any form of contract for the sale of such premises; or

(2) Loses, because of a foreclosure sale or action, the landlord's interest in premises that include a dwelling unit subject to a rental agreement;

is relieved of liability under the rental agreement and under this chapter as to events occurring subsequent to the conveyance.

     (b)  The new owner who purchases or comes into possession of the premises referred to in subsection (a) is liable under the rental agreement until the agreement expires and under this chapter."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2009.

INTRODUCED BY:

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