PART II. 
RIGHTS OF LESSEES



 



Cross References



 



  Sale of leased fee interest in condominiums and cooperatives
to individual lessees, see §514C-6.5.



 



§516D-11  Residential lease; disclosure. 
(a)  Except as otherwise provided in this section, for any sale of a
condominium or a cooperative residential leasehold apartment or unit, no later
than ten calendar days after the acceptance of the deposit, receipt, offer, and
acceptance contract (DROA) or other similar contract, the seller, either
directly or through the seller's agent, shall provide to the buyer for the
buyer's approval and acceptance one of the following lease documents which
provide the major provisions of the lease, such as the length of the lease,
lease rent terms, lease rent renegotiation dates, how renegotiated lease rents
will be calculated, and surrender clause provisions:



(1)  Master lease and any amendments thereto;



(2)  Apartment or unit lease and any amendments
thereto; or



(3)  For initial buyers of condominium apartments or
units only, an unexpired preliminary, final or supplemental condominium
property regime public report.



A sale for the purposes of this subsection shall not
be deemed to include any transfer to a co-owner, or to a spouse, parent, or
child of the seller, or to any transfer by devise, descent, court order, or by
operation of law, including but not limited to any transfer by foreclosure,
bankruptcy, or partition sale.  Upon receipt of the applicable lease document,
the buyer shall have ten calendar days to review, accept or reject the terms of
the lease.



(b)  In addition to the requirements set forth
in subsection (a), the buyer, on resale of the unit, shall acknowledge receipt
of the lease documents specified in subsection (a) through a signed receipt or
a signed DROA or other contract.  The receipt or contract shall include at
least the following information:



(1)  A standardized summary, as set forth on the
optional standardized summary form in this chapter or in a form similar to the
optional standardized summary form, of the lease provisions in plain language
which shall contain information on the following:  the length of the lease,
lease rent terms, lease rent renegotiation dates, how renegotiated lease rents
will be calculated; and surrender clause provisions;



(2)  A standardized glossary, satisfied by use of a Hawaii governmental publication, of commonly used lease terms in plain language;



(3)  A statement that there are currently no statutory
provisions for the mandatory conversion of leasehold condominiums and cooperatives,
and that there are no assurances that such measures will be enacted in the
future; and



(4)  A statement that the buyer has read and
understands the provisions of the standardized summary of the lease provisions.



(c)  Within ten calendar days of acknowledged
receipt of the contract specified in subsection (a), the buyer shall have the
right to cancel the offer to purchase with no loss of deposit.



(d)  The seller and buyer, on a standardized
form, may agree to reduce or extend the time period provided herein for the
production and review of the applicable lease documents; provided that the
agreement shall not constitute a waiver of the requirement to provide the
applicable lease documents to the buyer.  Buyers other than natural persons may
waive, in writing, all the requirements of this section. [L 1989, c 168, pt of
§4; ree L 1990, c 277, pt of §1; am L 1991, c 276, §6; am L 2008, c 28, §37]