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THE SENATE |
S.B. NO. |
2488 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to rent-to-own contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§667- Rent-to-own
contracts. (a)
This chapter and the Single Family Mortgage Foreclosure Act of 1994,
P.L. 103-327, shall apply to all rent-to-own contracts for real property in the
State; provided that this section shall not apply to the rent-to-own program
under section 201H-181.
(b) For purposes of this section,
"rent-to-own contract for real property" means any lease agreement
entered into between a seller of real property and the purchaser of real
property in which:
(1) The seller and purchaser agree to a
purchase price for the real property;
(2) The purchaser resides on the real
property;
(3) The purchaser makes periodic rent
payments to the seller of the real property that is at least twice the market
rate of rent for similar dwellings;
(4) An agreed upon portion of each periodic
rent payment is applied towards the purchase price to the credit of the
purchaser; and
(5) The seller retains legal title of the real property until the payment of the agreed upon purchase price by the purchaser at which point the title to the real property shall transfer from the seller to the purchaser."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. 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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Report Title:
Rent-to-Own Contracts; Real Property; Foreclosure Procedures
Description:
Subjects certain rent-to-own contracts for real property in the State to state and federal foreclosure procedures.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.