§480E-6 - Distressed property conveyance contract. - Hawaii Statutes

     [§480E-6]  Distressed property conveyance contract.  (a)  A distressed property conveyance contract shall be in writing and shall fully disclose all rights and obligations of the distressed property purchaser and all owners of the distressed property and all terms of any agreements between the distressed property purchaser and all owners of the distressed property.

     (b)  Every distressed property conveyance contract shall specifically include the following terms:

     (1)  The total consideration to be given by the distressed property purchaser or tax lien payor in connection with or incident to the distressed property conveyance;

     (2)  A complete description of the terms of payment or other consideration including any services of any nature that the distressed property purchaser represents will be performed for any owner of the distressed property before or after the distressed property conveyance;

     (3)  A complete description of the terms of any related agreement designed to allow any owner of the distressed property to remain in the distressed property, such as a rental agreement, repurchase agreement, contract for deed, or lease with option to buy;

     (4)  All notices as provided in this chapter;

     (5)  The following notice, in a type size no smaller than fourteen-point boldface type, completed with the name of the distressed property purchaser, shall appear immediately above the notice of right to cancel a distressed property conveyance contract required by section 480E-7(a):

"NOTICE REQUIRED BY HAWAII LAW

          UNTIL YOUR RIGHT TO CANCEL THIS CONTRACT HAS ENDED, (Name of distressed property purchaser) OR ANYONE WORKING FOR (Name of distressed property purchaser) CANNOT ASK YOU TO SIGN OR HAVE YOU SIGN ANY DEED OR ANY OTHER DOCUMENT.  YOU ARE URGED TO HAVE THIS CONTRACT REVIEWED BY AN ATTORNEY OF YOUR CHOICE WITHIN FIFTEEN BUSINESS DAYS OF SIGNING IT."; and

     (6)  If title to the distressed property will be transferred in the conveyance transaction, the following notice, in a type size no smaller than fourteen-point boldface type, completed with the name of the distressed property purchaser, shall appear immediately below the notice required by paragraph (5):

"NOTICE REQUIRED BY HAWAII LAW

          AS PART OF THIS TRANSACTION, YOU ARE GIVING UP TITLE TO YOUR HOME."

     (c)  A distressed property conveyance contract shall contain on its first page in a type size no smaller than fourteen-point boldface type:

     (1)  A description of the distressed property;

     (2)  The name, street address, and telephone number of the distressed property purchaser; and

     (3)  The name and address of the distressed property purchaser to which notice of cancellation is to be delivered.

     (d)  A distressed property conveyance contract shall be dated and signed by the distressed property purchaser.  If the distressed property purchaser is a person other than an individual, the individual executing the distressed property conveyance contract on behalf of the distressed property purchaser shall identify the title and office held by the individual.

     (e)  A distressed property conveyance contract shall be dated and signed by all owners of the distressed property.

     (f)  The distressed property purchaser shall provide each distressed property owner with a copy of the distressed property conveyance contract and attached notice of cancellation form immediately upon execution by all parties to the distressed property conveyance contract.  A distressed property conveyance contract shall not be effective until all parties to the distressed property conveyance contract have signed the contract.

     (g)  Pursuant to chapter 501 or 502, the distressed property purchaser shall record the distressed property conveyance contract no earlier than fifteen days after its execution but no later than twenty days after its execution; provided that the contract has not been canceled, or no later than fifteen days after the last day any distressed property owner has the right to cure a default under state law, whichever is later. [L 2008, c 137, pt of §2]