HB874.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	874
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. Section 508D-4, Hawaii Revised Statutes, is amended to read as follows:

"§508D-4 Prohibitions on sales of residential real property. (a) Except as provided in section 508D-3, no seller may sell residential real property unless:

(1) Prior to the sale of [~~such~~] the residential real property, a disclosure statement is:

(A) Signed and dated by the seller within six months before or ten calendar days after the acceptance of a real estate purchase contract by the buyer; and

(B) Delivered to the buyer as provided in section 508D-5;

(2) The buyer acknowledges receipt of the disclosure statement on the real estate purchase contract or in any addendum attached to the contract, or in a separate document; and

(3) The buyer is afforded the opportunity to examine the disclosure statement as provided in section 508D-5.

(b) Any deed restriction or other covenant running with the land that is applicable to the sale of residential real property is void and unenforceable; provided that the deed restriction or covenant requires a transferee, the transferee's heirs, successors, or assigns, to pay a declarant or other person designated by a transferor any fees in connection with a future transfer of the property. Any lien that either encumbers or purports to encumber the real property to secure a right under a deed restriction or covenant that applies to this subsection shall be void and unenforceable.

This subsection shall not apply to a deed restriction or other covenant running with the land that requires a fee associated with the conveyance of property that is payable to a government entity."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on November 1, 2009.

INTRODUCED BY:	_____________________________