PART IV. 
PROTECTION OF PURCHASERS



 



§514A-61  Disclosure requirements.  (a) 
Each developer of a project subject to this chapter shall prepare and provide
to each prospective initial purchaser an abstract which shall contain the
following:



(1)  The name and address of the project, and the
name, address, and telephone number of the developer or the developer's agent
and of the project manager or the project manager's agent;



(2)  A breakdown of the annual maintenance fees and
the monthly estimated cost for each apartment, revised and updated at least
every twelve months and certified to have been based on generally accepted
accounting principles;



(3)  A description of all warranties for the
individual apartments and the common elements, including the date of initiation
and expiration of any such warranties; and if no warranties exist, the
developer shall state that no warranties exist;



(4)  A statement of the proposed number of apartments
to be used for residential or hotel use in a mixed-use project containing
apartments for both residential and hotel use;



(5)  A statement of the extent of commercial or other
nonresidential development in the project.



(b)  In the case of a project which includes
one or more existing structures being converted to condominium status:



(1)  A statement by the declarant, based upon a report
prepared by an independent Hawaii registered architect or engineer, describing
the present condition of all structural components and mechanical and
electrical installations material to the use and enjoyment of the condominium;



(2)  A statement by the declarant of the expected
useful life of each item reported on in paragraph (1) or a statement that no
representations are made in that regard;



(3)  A list of any outstanding notices of uncured violations
of building code or other municipal regulations, together with the cost of
curing these violations;



(4)  A statement whether the project is on a lot, or
has structures or uses, which do not conform to present zoning requirements;



provided that paragraphs (1), (2), and (3) apply
only to apartments that may be occupied for residential use, and only to
apartments that have been in existence for five years.



(c)  This section shall be administered by the
commission.  The commission may waive the requirements of subsections (a) and
(b) if the information required to be contained in the disclosure abstract is
included in the commission's public report on the project.



(d)  Notwithstanding any other provision to the
contrary, this section shall not apply to a time share project duly registered
under chapter 514E if, with regard to that time share project:



(1)  A copy of the disclosure statement required by
chapter 514E is required to be delivered to the purchaser or prospective
purchaser; or



(2)  Pursuant to section 514E-30, a copy of the
disclosure statement required by chapter 514E is not required to be delivered
to the purchaser or prospective purchaser because the offer and sale of the
time share interest is made outside of Hawaii. [L 1977, c 98, pt of §2; am L
1978, c 176, §2; am L 1979, c 93, §3; gen ch 1985; am L 1986, c 295, §§4, 5; am
L 1989, c 168, §2; am L 1990, c 277, pt of §1; am L 1991, c 44, §§20, 21 and c
276, §2; am L 2001, c 237, pt of §3; am L 2002, c 204, §4]



 



Case Notes



 



  Trial court erred in granting summary judgment in favor of
developer on association's implied warranty of habitability claim where
developer failed to follow the dictates of this section to disclaim warranties;
it did not appear that an abstract containing the requisite information on
warranties was prepared by developer, and it reasonably followed that
"each prospective initial purchaser" was not provided with such an
abstract, as required by subsection (a).  115 H. 232, 167 P.3d 225.