STAND. COM. REP. NO. 3421

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1869

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 1869, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE LANDLORD TENANT CODE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to exempt from the Landlord-Tenant Code a seller of residential real property who occupies the residential real property after the transfer of the seller's ownership rights.

 

     Your Committee received testimony in support of this measure from the Hawaii Association of REALTORS.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that in a typical real estate transaction, sellers move out of a property prior to closing, a time when the seller's ownership rights are transferred to the buyer and the buyer takes occupancy and control of the property upon the closing of escrow and the transfer of title from the seller to the buyer.  However, if a seller does not or refuses to move out, the seller becomes a holdover seller.

 

     According to testimony received by your Committee, there are times when a seller may need to extend occupancy of the property beyond the close of escrow, most commonly when a seller needs more time to move.  Your Committee further finds that although there is an exclusion in the Landlord-Tenant Code for buyers who need to take early occupancy of a residential real property prior to closing, there is not a similar exclusion for holdover sellers.  This measure therefore establishes a specific exemption from the Landlord-Tenant Code for holdover sellers.  Your Committee notes that under this measure, a holdover seller who improperly maintains occupancy could still be removed from the residential real property, but only through an ejectment proceeding.

 

     Your Committee has amended this measure by:

 

     (1)  Changing its effective date to November 1, 2018; and

 

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1869, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1869, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

 

 

 

________________________________

ROSALYN H. BAKER, Chair