§516-70  Reversion of improvements. 
(a)  This section applies to all leases of residential lands as defined by
section 516-1.



(b)  At the termination of any lease, or at the
expiration of the lease term, the lessee may, if not then in default under the terms
of the lessee's lease, remove all onsite improvements on the lot which were
constructed at the cost of, or otherwise paid for by, the lessee, without
compensating the lessor therefor.  If the lessee notifies the lessor in writing
within sixty days before the termination or expiration that the lessee declines
to remove such onsite improvements and if the lessee is not then in default
under the terms of the lessee's lease, and if the lessor refuses to extend the
term of the existing lease or to issue a new lease for a term of at least
thirty years at a rental that is mutually agreeable to the parties or failing
such agreement that is determined by arbitration pursuant to chapter 658A, the
lessor shall be required to compensate the lessee for the current fair market
value of all such onsite improvements.  Such improvements shall be appraised at
the expense of the lessee.  The appraiser selected shall be by mutual agreement
of the lessee and the lessor or in conformance to chapter 658A.  The
compensation shall be determined by mutual agreement or in conformity with
chapter 658A, and the compensation shall be paid within thirty days of
determination.  Such expense of arbitration shall be equally shared by both
parties. [L 1967, c 307, §43; HRS §516-70; am L 1975, c 184, §2(19); gen ch
1985; am L 2001, c 265, §4]



 



Revision Note



 



  Section "516-1" substituted for
"516-1(5)".



 



Case Notes



 



  Requirement that lessor purchase leasehold improvements
unconstitutionally impairs obligation of preexisting lease contract.  69 H.
112, 736 P.2d 55.