Chapter 514E — Chapter 514E

§514E-1 Definitions. As used in this chapter, unless the context otherwise requires: "Acquisition agent" means any person, other than a developer or sales agent, who, for compensation, solicits or encourages others to attend a time share sales presentation or to contact a time sh…

§514E-1.5 Time share administrator; duties. The director shall appoint a time share administrator, who shall not be subject to chapter 76, to administer this chapter. The administrator shall be responsible for the performance of the duties conferred upon the director by this chap…

§514E-10 Registration required; developer, acquisition agent, plan manager, and exchange agent; registration renewal; title report; title holding trusts. (a) A developer shall not offer or dispose of a time share unit or a time share interest unless the disclosure statement requi…

§514E-10.5 Consultant review of developer filing. The director may contract with private consultants in connection with the review of the filing required of time share developers pursuant to section 514E-10(a) and (e). The cost of contracting private consultants shall be borne by…

§514E-11 Prohibited practices. It is a violation of this chapter for any sales agent or acquisition agent of time share units or plans to: Any violation of this section shall also constitute an unlawful or deceptive practice within the meaning of section 480-2; provided that in a…

§514E-11.1 Deceptive trade practices. It shall constitute an unfair or deceptive practice, within the meaning of chapter 480, for any developer, acquisition agent, or sales agent of time share units or plans to:

§514E-11.2 Power to enjoin. (a) Whenever it shall appear to the director, upon complaint or otherwise, that any person has engaged in, is engaged in, or is about to engage in any act, practice or transaction in violation of this chapter or the rules of the director adopted pursua…

§514E-12 Civil penalty; suspension or revocation of registrations. (a) For any cause authorized by law, including but not limited to a determination by the director that any person has violated any provision of this chapter or any rule adopted by the director pursuant to this cha…

§514E-16 Deposit of purchaser's funds, notes, and contracts into escrow. (a) All funds and any negotiable instruments and purchase money contracts received before closing from or on behalf of purchasers or prospective purchasers in connection with the purchase or reservation of t…

§514E-17 Release of purchaser's funds, notes, and contracts from escrow without a closing. A purchaser's funds, negotiable instruments, and purchase money contracts may be released from escrow without a closing as follows:

§514E-18 Release of purchaser's funds, notes, and contracts from escrow upon closing. (a) Upon the closing of the escrow for the sale of a time share interest, the purchaser's funds and any negotiable instruments and purchase money contracts made by the purchaser shall be deliver…

§514E-19 Protection of purchasers from blanket liens. (a) An escrow for the sale of a time share interest in a time share ownership plan may close only if the requirements of any one of the following alternatives for protecting the purchaser have been satisfied: (b) An escrow for…

§514E-2 Status of property. (a) The temporal division of any interest in real property shall not, in and of itself, affect its status as real property. (b) Whether a time share plan is a time share ownership plan or time share use plan, for purposes of chapter 467 a time share in…

§514E-2.5 Licensing of sales agents and acquisition agents. (a) Except as provided in section 467-2, no sales agent shall act or assume to act as a real estate salesperson or a real estate broker without a license previously obtained under and in compliance with chapter 467 and t…

§514E-20 Effect of recording a nondisturbance agreement. When a nondisturbance agreement has been executed by the lienholder and recorded, the lienholder, its successors, and anyone who acquires the property through foreclosure or by a deed, assignment, or other transfer in place…

§514E-21 Effect of recording a notice of time share plan. When a notice of time share plan is recorded, claims by creditors of the developer and claims upon, or by successors to, the interest of the title holder who executed the notice of time share plan, shall be subordinate to …

§514E-22 General requirements for trusts. If time share units are required to be conveyed to a trustee pursuant to section 514E-19, the trust instrument must provide for at least the following:

§514E-23 Requirements for trustees. If time share units are conveyed to a trustee pursuant to section 514E-19, the following requirements shall be met:

§514E-24 Additional requirements for lien payment trusts. (a) If a lien payment trust is established to meet the requirements of section 514E-19, then in addition to the requirements of section 514E-22, the trust instrument shall: (b) If a lien payment trust is established to mee…

§514E-25 Lien payment deposit. (a) The lien payment deposit shall consist of either: (d) For purposes of this section, a purchase money contract is deemed delinquent when an installment payment is more than fifty-nine days past due. [L 1982, c 186, §13; am L 2018, c 18, §35]

§514E-26 Termination of a trust. (a) In the case of a time share use plan, the trust for the time share units shall be irrevocable during the time that any owner of a time share interest has a right to the occupancy of a time share unit, except as provided in subsection (c). (b) …

§514E-27 Alternative arrangements for purchaser protection. (a) In recognition of the impossibility or impracticability of a proposed time share plan satisfying some of the requirements of section 514E-19 because of factors over which the developer has little or no control, the d…

§514E-28 Requirements for surety bonds and letters of credit. Any surety bond or irrevocable letter of credit furnished to the director pursuant to section 514E-19 must be in an amount which is not less than one hundred ten per cent of the remaining principal balance of every ind…

§514E-29 Association; lien for delinquent assessments. (a) All time share plans shall have an association which shall be a nonprofit or not-for-profit corporation, a nonprofit or not-for-profit limited liability company, or any other entity organized on a nonprofit or not-for-pro…

§514E-3 Taxation. (a) The plan manager, if any, shall collect and pay real property and transient accommodations taxes due on the time share units or occupants under the plan manager's authority as the agent of the owners of the individual units or temporal divisions thereof. The…

§514E-30 Scope of chapter. This chapter applies to the offer and sale in Hawaii of time share interests in time share units located in Hawaii. If time share units are located outside of Hawaii, but any offer or sale is made within the State, this chapter, except for sections 514E…

§514E-5 Geographic limitations. (a) Except as provided in this section, time share units, time share plans, and transient vacation rentals are prohibited. (b) Existing time share units, time share plans, and transient vacation rentals are not impaired by the provisions of this se…

§514E-5.5 Foreign time share plans; exemption. (a) A foreign time share plan may obtain an exemption from the requirements of this chapter as provided in this section. (b) The developer of a foreign time share plan shall pay an exemption fee of $100 and file the following minimum…

§514E-6 Time sharing in projects. (a) If the project in which the time share unit or time share plan is to be created contains an existing time share unit or time share plan, then time share units and plans [shall] be regulated according to the terms of the project instruments. (…

§514E-8 Mutual right to cancel. Within seven calendar days after the execution of the contract to purchase an interest in a time share plan, or within seven calendar days after the purchaser's receipt of a disclosure statement required by this chapter, whichever occurs later, eit…

§514E-9 Disclosure statement. (a) Any offering of a time sharing plan to the public shall disclose: (b) The requirements of this section shall not apply to the following transactions: (c) A developer or sales agent shall promptly amend or supplement the disclosure statement to re…