§501-82  Tenure of holder of certificate of
title.  (a)  Every applicant receiving a certificate of title in pursuance
of a decree of registration, and every subsequent purchaser of registered land
who takes a certificate of title for value and in good faith, hold the same
free from all encumbrances except those noted on the certificate in the order
of priority of recordation, and any of the following encumbrances which may be
subsisting, namely:



(1)  Liens, claims, or rights arising or existing
under the laws or Constitution of the United States, which the statutes of this
State cannot require to appear of record in the registry; provided that notices
of liens for internal revenue taxes payable to the United States, and
certificates affecting such liens, shall be deemed to fall within this
paragraph only if the same are recorded in the bureau of conveyances as
provided by chapter 505;



(2)  Unpaid real property taxes assessed against the
land and improvements covered by the certificate of title, with interest,
penalties, and other additions to the tax, which, unless a notice is filed and
registered as provided by county real property tax ordinance, shall be for the
period of three years from and after the date on which the lien attached, and
if proceedings for the enforcement or foreclosure of the tax lien are brought
within the period, until the termination of the proceedings or the completion
of the tax sale;



(3)  State tax liens, if the same are recorded in the
bureau of conveyances as provided by section 231-33;



(4)  Any public highway, or any private way laid out
under the provisions of law, when the certificate of title does not state that
the boundary of such way has been determined;



(5)  Any lease, coupled with occupancy, for a term not
exceeding one year; provided that the priority of the unrecorded lease shall
attach only at the date of the commencement of the unrecorded lease and expire
one year from the date or sooner if so expressed;



(6)  Any liability to assessments for betterments, or
statutory liability which may attach to land as a lien prior to or independent
of, the recording or registering of any paper of the possibility of a lien for
labor or material furnished in the improvement of the land; provided that the
priority of any such liability and the lien therefor (other than for labor and
material furnished in the improvement of the land which shall be governed by
section 507-43) shall cease and terminate three years after the liability first
accrues unless notice thereof, signed by the officer charged with collection of
such assessments or liability, setting forth the amount claimed, the date of
accrual, and the land affected, is registered and noted on the certificate of
title within such three year period; provided further that if there are easements
or other rights, appurtenant to a parcel of registered land which for any
reason have failed to be registered, such easements or rights shall remain so
appurtenant notwithstanding such failure, and shall be held to pass with the
land until cut off or extinguished by the registration of the servient estate,
or in any other manner;



(7)  The possibility of reversal or vacation of the
decree of registration upon appeal; or



(8)  Any encumbrance not herein required to be
registered as provided in sections 501-241 to 501-248 and relating to a
leasehold time share interest.



(b)  For the purposes of this section, an
encumbrance shall be deemed sufficiently noted on a certificate if the
notation:



(1)  References a document by name or number which
contains an encumbrance; and



(2)  Indicates that the referenced document contains
an encumbrance to which the registered land is subject.



(c)  Except as provided in sections 501-241 to
501-248, if the title of a recorded document indicates that it contains an
encumbrance, the assistant registrar shall note the document as an encumbrance
on the certificate of title or the new certificate of title issued upon
recordation of such document, as applicable. [L 1903, c 56, §39; am L 1909, c
139, §1; RL 1925, §3229; am imp L 1925, c 192, §14; am L 1931, c 222, §1; am
imp L 1932 2d, c 140, §65; RL 1935, §5041; RL 1945, §12641; am L 1945, c 255,
§1; am L 1949, c 144, §1; RL 1955, §342-42; HRS §501-82; am L 1972, c 91,
§1(q), (r); am L 1973, c 128, §3; am L 1989, c 14, §17 and c 20, §2; am L 1994,
c 206, §2; am L 1998, c 219, §7]



 



Revision Note



 



  "Sections 501-241 to 501-248" substituted for
"chapter 501, part      ".



 



Case Notes



 



  Dower must be noted.  21 H. 431, 434; 35 H. 816.



  Encumbrances which need not be noted:  Third paragraph,
relating to highways, construed.  31 H. 787, 789, aff'd 61 F.2d 896.  See 39 H.
514.  Relating to private ways, construed.  40 H. 730.  Fifth paragraph,
relating to statutory liens, construed.  31 H. 446.



  "Good faith" of purchaser.  See 33 H. 343; 35 H.
816; 37 H. 270; 44 H. 235, 248, 353 P.2d 1007; 44 H. 365, 367-68, 355 P.2d 40,
aff'g 44 H. 147, 355 P.2d 40; 50 H. 189, 436 P.2d 207.



  Purchaser of lease noted on certificate of title holds free
of unregistered sublease.  33 H. 343.



  Whether holder of equitable right may, by registration, cut
off equities which otherwise would be superior, raised but not decided.  44 H.
235, 247, 353 P.2d 1007.



  Unauthorized city and county deed, effect of.  44 H. 365,
367-68, 355 P.2d 40, aff'g 44 H. 147, 355 P.2d 40.



  Knowledge of unregistered encumbrance does not disqualify
holder of certificate of title from protection against it.  50 H. 189, 436 P.2d
207.



  Maintenance of city and county sewer line across premises is
required to be noted as an "encumbrance".  50 H. 189, 436 P.2d 207.



  Whatever equitable rights may be possessed by holder of
unregistered encumbrance, they cannot be asserted against holder of certificate
of title.  50 H. 189, 436 P.2d 207.



  One who takes a certificate of title to registered land for
value and in good faith holds land free of all encumbrances except those noted
on the certificate and enumerated in statute.  58 H. 580, 574 P.2d 524.



  City condemning registered land may invoke the same rights
and protections regarding the registered land as may be invoked by a private
land purchaser.  60 H. 40, 587 P.2d 294.



  Reference to height restriction on transfer certificate of
title within document identified as a "consent" deemed to be
insufficient notation of an encumbrance under this section; because height
restriction was never explicitly and separately noted on 1988 transfer
certificate of title, defendant-appellant was entitled to hold lot free from
such restriction.  75 H. 370, 862 P.2d 1048.



  Cited:  41 H. 490, 497, remanded 256 F.2d 208, modified 42 H.
661, app. dism'd 267 F.2d 449; 74 H. 85, 839 P.2d 10.