In my ongoing commitment to keep Maui timeshare resale owners updated and informed, I want to share the following information I received relating to a recently passed Hawaii House Bill regarding the transfer of titles for foreign or non-resident timeshare owner conveyances.
If after reading this information, you have a question or would like an explanation about the information contained in this article, please leave me a comment below.
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In accordance with the Hague Convention, anyone living in a foreign country signing a deed for the property in another country has to go to a notary of the country where the property is located.
The Hawaii House of Representatives 27th Legislature of 2013 passed the HB424, Act 277 relating to timeshare conveyances only – which states a “commissioner can be appointed in foreign countries to notarize timeshare deeds”.
Although the law has been passed, there may have to be additional rules drafted before the process is fully implemented.
If you would like to read Act 277 in its entirety, click on: http://www.capitol.hawaii.gov/session2013/bills/HB424_CD1_.htm
In addition, the Hawaii House of Representatives also passed the two additional acts regarding to general real estate holdings in Hawaii:
1 – No more Act 182 fees (with new Act 196) for third party buyers. Act 196 affects all REO and foreclosure sales (both judicial and non-judicial) for AOAO and HOA properties. However, Act 182 fees can still be charged against the seller bank for up to 6 months.
Background (Prior laws): Under Act 48 (2011), an Association was able to collect up to $7,200 or 12 months of maintenance fees. Under Act 182 (2012), the law was changed for an Association to collect up to 6 months of maintenance fees, with no limit on amount. The Act 182 fees were for 6 months of delinquency that the prior/foreclosed owner incurred. The foreclosing bank was still responsible for the maintenance fees after the bank acquired title.
Under the old law (Acts 48 and 182), the new third-party buyer was responsible for paying it (although often times, the seller bank would pay it after escrow would get the payoff demand). Some people thought this was an unfair law for the third-party buyer because the Association could come after them after closing. At the same time, however, the other perspective was that the third-party buyer should consider the discount that they were getting in buying a REO/foreclosure property.
New Law – Act 196: This year (2013), under Act 196, the law has again been revised, to now provide that the 6 months of maintenance fees can only be collected from the foreclosing bank! Act 196 states that that third-party buyer at an REO sale or foreclosure auction sale is no longer responsible for paying the prior/foreclosed owner’s delinquent maintenance fees.
Act 196 states that if the AOAO or HOA decides to specially assess the 6 months of delinquency against the seller bank then it is only for the monthly maintenance fees. The 6 months special assessment cannot include attorney’s fees and cost, late charges, interest, etc.
In addition, Act 196 also states that when an Association acquires title to the unit (by judicial or non-judicial foreclosure), any excess rental income received by the Association from the unit shall be paid to the existing lien holders based on the priority of the lien – not on a pro rate basis, and it shall be applied to the benefit of the unit owner. To read more about Act 196, click on the following link: http://www.capitol.hawaii.gov/session2013/bills/HB21_CD1_.htm
2 – Associations can continue non-judicial foreclosure subject to a lender’s judicial foreclosure. Act 197 allows a condominium association, as a junior lien holder, to commence or continue a non-judicial foreclosure action on a property subject to a judicial foreclosure even if the lender has filed for foreclosure.
Act 197 preserves the right of owner-occupants to require the foreclosing mortgagee to participate in the dispute resolution process in situations where an association forecloses on residential real property occupied by one or more owner-occupant mortgagors for whom the unit is and has been the person’s primary residence for a continuous period of not less than two hundred days immediately preceding the date on which the notice is served and the mortgagee subsequently forecloses its lien on the same property.To read more about how this Act affects junior lien holders, click on the link: http://www.capitol.hawaii.gov/session2013/bills/HB25_CD1_.htm
Advantage Vacation is a licensed timeshare resale brokerage located at the Lahaina Cannery Mall in Lahaina, Maui. We are leaders in the secondary market of timeshare resales and are members of the Resort Development Association (ARDA) and Accredited Members of the BBB with an A+ Rating. We have expanded our services to include general real estate. The real estate professionals at Advantage Vacation look forward to providing full service for all your real estate and timeshare resale needs. Our licensed real estate professionals have over 35 years of experience and expert knowledge of resort, hotel, vacation clubs and points-based timeshare resales. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed. If you want to buy a timeshare resale, you can be assured you are working with professionals who believe that honesty and integrity are the most important aspects of the business they are in – timeshare resales.
Whether you want to buy a timeshare or sell a timeshare, buy or sell something in the general real estate market, they will be with you every step of the way – before, during and after the transaction is completed. Our business has been built on relationships and we pride ourselves on providing excellent service to our clients. Advantage Vacation is using Twitter and Facebook to help educate people on the changes in the timeshare industry along with current timeshare tips, up to date timeshare news and timeshare FAQ’s.