Hawaii Revised Statutes 514b. Condominiums

PART I. GENERAL PROVISIONS

• 514b-1 Short Title.
  This chapter may be cited as the Condominium Property Act. [L 2004, c 164, pt of §2]
• 514b-2 Applicability.
  Applicability of this chapter is governed by part II. [L 2004, c 164, pt of §2]
• 514b-3 Definitions.
  As used in this chapter and in the declaration and bylaws, unless specifically provided otherwise or required by the context: "Affiliate of a developer"...
• 514b-4 Separate Titles and Taxation.
  (a) Each unit that has been created, together with its appurtenant interest in the common elements, constitutes, for all purposes, a separate parcel of...
• 514b-5 Conformance With County Land Use Laws.
  Any condominium property regime established under this chapter shall conform to the existing underlying county zoning for the property and all applicable county permitting...
• 514b-6 Supplemental County Rules Governing a Condominium Property Regime.
  Whenever any county deems it proper, the county may adopt supplemental rules governing condominium property regimes established under this chapter in order to implement...
• 514b-7 Construction Against Implicit Repeal.
  This chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be construed to be...
• 514b-8 Severability.
  If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other...
• 514b-9 Obligation of Good Faith.
  Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or enforcement. [L 2004, c 164, pt...
• 514b-10 Remedies to Be Liberally Administered.
  (a) The remedies provided by this chapter shall be liberally administered to the end that the aggrieved party is put in as good a...

PART II. APPLICABILITY

• 514b-21 Applicability to New Condominiums.
  This chapter applies to all condominiums created within this State after July 1, 2006. The provisions of chapter 514A do not apply to condominiums...
• 514b-22 Applicability to Preexisting Condominiums.
  Sections 514B-4, 514B-5, 514B-35, 514B-41(c), 514B-46, 514B-72, and part VI, and section 514B-3 to the extent definitions are necessary in construing any of those...
• 514b-23 Amendments to Governing Instruments.
  (a) The declaration, bylaws, condominium map, or other constituent documents of any condominium created before July 1, 2006 may be amended to achieve any...

PART III. CREATION, ALTERATION, AND TERMINATION
OF CONDOMINIUMS

• 514b-31 Creation.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-31] Creation. (a) To create a condominium property regime, all of the owners...
• 514b-32 Contents of Declaration.
  Part heading amended by L 2005, c 93, pt of §2. §514B-32 Contents of declaration. (a) A declaration shall describe or include the following:...
• 514b-33 Condominium Map.
  Part heading amended by L 2005, c 93, pt of §2. §514B-33 Condominium map. (a) A condominium map shall be recorded with the declaration....
• 514b-34 Condominium Map; Certification of Architect, Engineer, or Surveyor.
  Part heading amended by L 2005, c 93, pt of §2. §514B-34 Condominium map; certification of architect, engineer, or surveyor. (a) The condominium map...
• 514b-35 Unit Boundaries.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-35] Unit boundaries. Except as provided by the declaration: (1) If walls, floors,...
• 514b-36 Leasehold Units.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-36] Leasehold units. An undivided interest in the land that is subject to...
• 514b-37 Common Interest.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-37] Common interest. Each unit shall have the common interest it is assigned...
• 514b-38 Common Elements.
  Part heading amended by L 2005, c 93, pt of §2. §514B-38 Common elements. Each unit owner may use the common elements in accordance...
• 514b-39 Limited Common Elements.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-39] Limited common elements. If the declaration designates any portion of the common...
• 514b-40 Transfer of Limited Common Elements.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-40] Transfer of limited common elements. Except as provided in the declaration, any...
• 514b-41 Common Profits and Expenses.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-41] Common profits and expenses. (a) The common profits of the property shall...
• 514b-42 Metering of Utilities.
  Part heading amended by L 2005, c 93, pt of §2. §514B-42 Metering of utilities. (a) Units in a project that includes units designated...
• 514b-43 Liens Against Units.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-43] Liens against units. (a) For purposes of this section: (1) "Visible commencement...
• 514b-44 Contents of Deeds or Leases of Units.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-44] Contents of deeds or leases of units. Deeds or leases of units...
• 514b-45 Blanket Mortgages and Other Blanket Liens Affecting a Unit At Time of First Conveyance or Lease.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-45] Blanket mortgages and other blanket liens affecting a unit at time of...
• 514b-46 Merger of Projects or Increments.
  Part heading amended by L 2005, c 93, pt of §2. [§514B-46] Merger of projects or increments. (a) Two or more projects, or increments...
• 514b-47 Removal From Provisions of This Chapter.
  Part heading amended by L 2005, c 93, pt of §2. §514B-47 Removal from provisions of this chapter. (a) If: (1) Owners of units...

PART IV. REGISTRATION AND ADMINISTRATION OF CONDOMINIUMS

• 514b-51 Registration Required; Exceptions.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-51] Registration required; exceptions. (a) A developer may not offer for sale any...
• 514b-52 Application for Registration.
  Part heading amended by L 2005, c 93, pt of §3. §514B-52 Application for registration. (a) An application for registration of a project shall:...
• 514b-53 Inspection by Commission.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-53] Inspection by commission. (a) After appropriate notification has been made or additional...
• 514b-54 Developer's Public Report; Requirements for Issuance of Effective Date.
  Part heading amended by L 2005, c 93, pt of §3. §514B-54 Developer's public report; requirements for issuance of effective date. (a) Prior to...
• 514b-55 Developer's Public Report; Request for Hearing by Developer.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-55] Developer's public report; request for hearing by developer. If an effective date...
• 514b-56 Developer's Public Report; Amendments.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-56] Developer's public report; amendments. (a) After the effective date for a developer's...
• 514b-57 Commission Oversight of Developer's Public Report.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-57] Commission oversight of developer's public report. (a) The commission at any time...
• 514b-58 Annual Report.
  Part heading amended by L 2005, c 93, pt of §3. §514B-58 Annual report. (a) A developer, its successor, or assign shall file annually...
• 514b-59 Expiration of Developer's Public Reports.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-59] Expiration of developer's public reports. Except as otherwise provided in this chapter,...
• 514b-60 No False or Misleading Information.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-60] No false or misleading information. It shall be unlawful for any person...
• 514b-61 General Powers and Duties of Commission.
  Part heading amended by L 2005, c 93, pt of §3. §514B-61 General powers and duties of commission. (a) The commission may: (1) Adopt,...
• 514b-62 Deposit of Fees.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-62] Deposit of fees. Unless otherwise provided in this chapter, all fees collected...
• 514b-63 Condominium Specialists; Appointment; Duties.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-63] Condominium specialists; appointment; duties. The director of commerce and consumer affairs may...
• 514b-64 Private Consultants.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-64] Private consultants. The director of commerce and consumer affairs may contract with...
• 514b-65 Investigative Powers.
  Part heading amended by L 2005, c 93, pt of §3. §514B-65 Investigative powers. If the commission has reason to believe that any person...
• 514b-66 Cease and Desist Orders.
  Part heading amended by L 2005, c 93, pt of §3. §514B-66 Cease and desist orders. In addition to its authority under sections 514B-67...
• 514b-67 Termination of Registration.
  Part heading amended by L 2005, c 93, pt of §3. §514B-67 Termination of registration. (a) The commission, after notice and hearing, may issue...
• 514b-68 Power to Enjoin.
  Part heading amended by L 2005, c 93, pt of §3. §514B-68 Power to enjoin. Whenever the commission believes from satisfactory evidence that any...
• 514b-69 Penalties.
  Part heading amended by L 2005, c 93, pt of §3. §514B-69 Penalties. (a) Any person who violates or fails to comply with this...
• 514b-70 Limitation of Actions.
  Part heading amended by L 2005, c 93, pt of §3. [§514B-70] Limitation of actions. No civil or criminal actions shall be brought by...
• 514b-71 Condominium Education Trust Fund.
  Part heading amended by L 2005, c 93, pt of §3. §514B-71 Condominium education trust fund. (a) The commission shall establish a condominium education...
• 514b-72 Condominium Education Trust Fund; Payments by Associations and Developers.
  Part heading amended by L 2005, c 93, pt of §3. §514B-72 Condominium education trust fund; payments by associations and developers. (a) Each project...
• 514b-73 Condominium Education Trust Fund; Management.
  Part heading amended by L 2005, c 93, pt of §3. §514B-73 Condominium education trust fund; management. (a) The sums received by the commission...

PART V. PROTECTION OF CONDOMINIUM PURCHASERS

• 514b-81 Applicability; Exceptions.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-81] Applicability; exceptions. (a) This part applies to all units...
• 514b-82 Sale of Units.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-82] Sale of units. Except as provided in section 514B-85,...
• 514b-83 Developer's Public Report.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions §514B-83 Developer's public report. (a) A developer's public report shall...
• 514b-84 Developer's Public Report; Special Types of Condominiums.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions §514B-84 Developer's public report; special types of condominiums. (a) In...
• 514b-85 Preregistration Solicitation.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-85] Preregistration solicitation. (a) Prior to the registration of the...
• 514b-86 Requirements for Binding Sales Contracts; Purchaser's Right to Cancel.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions §514B-86 Requirements for binding sales contracts; purchaser's right to cancel....
• 514b-87 Rescission After Sales Contract Becomes Binding.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-87] Rescission after sales contract becomes binding. (a) Purchasers shall...
• 514b-88 Delivery.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-88] Delivery. In this part, delivery shall be made by:...
• 514b-89 Sales Contracts Before Completion of Construction.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-89] Sales contracts before completion of construction. If a sales...
• 514b-90 Refunds Upon Cancellation or Termination.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-90] Refunds upon cancellation or termination. Upon any cancellation under...
• 514b-91 Escrow of Deposits.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions §514B-91 Escrow of deposits. All moneys paid by purchasers shall...
• 514b-92 Use of Purchaser Deposits to Pay Project Costs.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-92] Use of purchaser deposits to pay project costs. (a)...
• 514b-93 Early Conveyance to Pay Project Costs.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-93] Early conveyance to pay project costs. (a) Subject to...
• 514b-94 Misleading Statements and Omissions; Remedies.
  Part heading amended by L 2005, c 93, pt of §4. A. General Provisions [§514B-94] Misleading statements and omissions; remedies. (a) No person may:...

B. Sales to Owner-Occupants

• 514b-95 Definitions.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-95] Definitions. As used in this subpart: "Chronological system" means a system...
• 514b-95.5 Announcement or Advertisement; Publication.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-95.5] Announcement or advertisement; publication. At least once in each of two...
• 514b-96 Designation of Residential Units.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-96] Designation of residential units. (a) The developer of any project containing...
• 514b-96.5 Unit Selection; Requirements.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-96.5] Unit selection; requirements. (a) When the chronological system is used, the...
• 514b-97 Affidavit.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-97] Affidavit. (a) The owner-occupant affidavit required by section 514B-96.5 shall expire...
• 514b-97.5 Prohibitions.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-97.5] Prohibitions. (a) No person who has executed an owner-occupant affidavit shall...
• 514b-98 Sale of Residential Units; Developer Requirements.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. §514B-98 Sale of residential units; developer requirements. (a) The developer may go...
• 514b-98.5 Enforcement.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-98.5] Enforcement. (a) Whenever the commission finds based upon satisfactory evidence that...
• 514b-99 Penalties.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-99] Penalties. (a) Any person who executes an affidavit required by this...
• 514b-99.3 False Statement.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. [§514B-99.3] False statement. It shall be unlawful for any person to make...
• 514b-99.5 Inapplicability of Laws.
  The sections in this subpart enacted as §§514B-95.1 to 514B-95.11, are redesignated. §514B-99.5 Inapplicability of laws. (a) This subpart shall not apply to: (1)...

PART VI. MANAGEMENT OF CONDOMINIUMS
A. Powers, Duties, and Other General Provisions

• 514b-101 Applicability; Exceptions.
  (a) This part applies to all condominiums subject to this chapter, except as provided in subsection (b). (b) If so provided in the declaration...
• 514b-102 Association; Organization and Membership.
  (a) The first meeting of the association shall be held not later than one hundred eighty days after recordation of the first unit conveyance;...
• 514b-103 Association; Registration.
  (a) Each project or association having more than five units shall: (1) Secure and maintain a fidelity bond in an amount for the coverage...
• 514b-104 Association; Powers.
  (a) Except as provided in section 514B-105, and subject to the provisions of the declaration and bylaws, the association, even if unincorporated, may: (1)...
• 514b-105 Association; Limitations on Powers.
  (a) The declaration and bylaws may not impose limitations on the power of the association to deal with the developer which are more restrictive...
• 514b-106 Board; Powers and Duties.
  (a) Except as provided in the declaration, the bylaws, subsection (b), or other provisions of this chapter, the board may act in all instances...
• 514b-106.5 Service of Process.
  The board shall establish a policy to provide reasonable access to persons authorized to serve civil process in compliance with section 634-21.5. [L 2009, c...
• 514b-107 Board; Limitations.
  (a) Members of the board shall be unit owners or co-owners, vendees under an agreement of sale, a trustee of a trust which owns...
• 514b-108 Bylaws.
  (a) A true copy of the bylaws shall be recorded in the same manner as the declaration. No amendment to the bylaws is valid...
• 514b-109 Restatement of Declaration and Bylaws.
  (a) Notwithstanding any other provision of this chapter or of any other statute or instrument, an association at any time may restate the declaration...
• 514b-110 Bylaws Amendment Permitted; Mixed Use Property; Representation on Board.
  (a) The bylaws of an association may be amended to provide that the composition of the board reflect the proportionate number of units for...
• 514b-111 Judicial Power to Excuse Compliance With Requirements of Declaration or Bylaws.
  (a) The circuit court of the judicial circuit in which a condominium is located may excuse compliance with any of the following provisions in...
• 514b-112 Condominium Community Mutual Obligations.
  (a) All unit owners, tenants of owners, employees of owners and tenants, or any other persons that may in any manner use property or...
• 514b-113 Medical Marijuana; Discrimination.
  A provision in any articles of incorporation, declaration, bylaws, administrative rules, house rules, or association documents of a condominium allowing for any of the discriminatory...

B. Governance – Elections and Meetings

• 514b-121 Association Meetings.
  (a) A meeting of the association shall be held at least once each year. (b) Special meetings of the association may be called by...
• 514b-122 Association Meetings; Minutes.
  (a) Minutes of meetings of the association shall be approved at the next succeeding regular meeting or by the board, within sixty days after...
• 514b-123 Association Meetings; Voting; Proxies.
  (a) If only one of several owners of a unit is present at a meeting of the association, that owner is entitled to cast...
• 514b-124 Association Meetings; Purchaser's Right to Vote.
  The purchaser of a unit pursuant to a recorded agreement of sale shall have all the rights of a unit owner, including the right...
• 514b-124.5 Voting for Elections; Cumulative Voting.
  (a) If the bylaws provide for cumulative voting for an election at a meeting, each unit owner present in person or represented by proxy...
• 514b-125 Board Meetings.
  (a) All meetings of the board, other than executive sessions, shall be open to all members of the association, and association members who are...
• 514b-126 Board Meetings; Minutes.
  (a) Minutes of meetings of the board shall include the recorded vote of each board member on all motions except motions voted on in...

C. Operations

• 514b-131 Operation of the Property.
  The operation of the property shall be governed by this chapter and the declaration and bylaws. [L 2004, c 164, pt of §2]
• 514b-132 Managing Agents.
  (a) Every managing agent shall: (1) Be a: (A) Licensed real estate broker in compliance with chapter 467 and the rules of the commission....
• 514b-133 Association Employees; Background Check; Prohibition.
  (a) The board, managing agent, or resident manager, upon the written authorization of an applicant for employment as a security guard or resident manager...
• 514b-134 Management and Contracts; Developer, Managing Agent, and Association.
  (a) Any developer or affiliate of the developer or a managing agent, who manages the operation of the property from the date of recordation...
• 514b-135 Termination of Contracts and Leases of Developer.
  (a) If entered into before the board elected by the unit owners pursuant to section 514B-106(e) takes office: (1) Any management contract, employment contract,...
• 514b-136 Transfer of Developer Rights.
  (a) A developer right created or reserved under this chapter may be transferred only by a recorded instrument evidencing the transfer. The instrument is...
• 514b-137 Upkeep of Condominium.
  (a) Except to the extent provided by the declaration or bylaws, the association is responsible for the operation of the property, and each unit...
• 514b-138 Upkeep of Condominium; High-Risk Components.
  (a) The board, after notice to all unit owners and an opportunity for owner comment, may determine that certain portions of the units, or...
• 514b-139 Upkeep of Condominium; Disposition of Unclaimed Possessions.
  (a) When personalty in or on the common elements of a project has been abandoned, the board may sell the personalty in a commercially...
• 514b-140 Additions to and Alterations of Condominium.
  (a) No unit owner shall do any work that may jeopardize the soundness or safety of the property, reduce the value thereof, or impair...
• 514b-141 Tort and Contract Liability; Tolling of Limitation Period.
  (a) A unit owner is not liable, solely by reason of being a unit owner, for any injury or damage arising out of the...
• 514b-142 Aging in Place or Disabled; Limitation on Liability.
  (a) The association, its directors, unit owners, or residents, and their agents and tenants, acting through the board, shall not have any legal responsibility...
• 514b-143 Insurance.
  (a) Unless otherwise provided in the declaration or bylaws, the association shall purchase and at all times maintain the following: (1) Property insurance: (A)...
• 514b-144 Association Fiscal Matters; Assessments for Common Expenses.
  (a) Assessments shall be made based on a budget adopted and distributed or made available to unit owners at least annually by the board....
• 514b-145 Association Fiscal Matters; Collection of Unpaid Assessments From Tenants or Rental Agents.
  (a) If the owner of a unit rents or leases the unit and is in default for thirty days or more in the payment...
• 514b-146 Association Fiscal Matters; Lien for Assessments.
  (a) All sums assessed by the association but unpaid for the share of the common expenses chargeable to any unit shall constitute a lien...
• 514b-147 Association Fiscal Matters; Other Liens Affecting the Condominium.
  (a) Except as provided in subsection (b), a judgment for money against the association, if recorded, is not a lien on the common elements,...
• 514b-148 Association Fiscal Matters; Budgets and Reserves.
  (a) The budget required under section 514B-144(a) shall include at least the following: (1) The estimated revenues and operating expenses of the association; (2)...
• 514b-149 Association Fiscal Matters; Handling and Disbursement of Funds.
  (a) The funds in the general operating account of the association shall not be commingled with funds of other activities such as lease rent...
• 514b-150 Association Fiscal Matters; Audits, Audited Financial Statement.
  (a) The association shall require an annual audit of the association financial accounts and no less than one annual unannounced verification of the association's...
• 514b-151 Association Fiscal Matters; Lease Rent Renegotiation.
  (a) Notwithstanding any provision in the declaration or bylaws, any lease or sublease of the real estate or of a unit, or of an...
• 514b-152 Association Records; Generally.
  The association shall keep financial and other records sufficiently detailed to enable the association to comply with requests for information and disclosures related to...
• 514b-153 Association Records; Records to Be Maintained.
  (a) An accurate copy of the declaration, bylaws, house rules, if any, master lease, if any, a sample original conveyance document, all public reports...
• 514b-154 Association Records; Availability; Disposal; Prohibitions.
  (a) The association's most current financial statement shall be provided to any interested unit owner at no cost or on twenty-four-hour loan, at a...
• 514b-154.5 Association Documents to Be Provided.
  (a) Notwithstanding any other provision in the declaration, bylaws, or house rules, if any, the following documents, records, and information, whether maintained, kept, or...
• 514b-155 Association As Trustee.
  With respect to a third person dealing with the association in the association's capacity as a trustee, the existence of trust powers and their...
• 514b-156 Pets.
  (a) Any unit owner who keeps a pet in the owner's unit pursuant to a provision in the bylaws which allows owners to keep...
• 514b-157 Attorneys' Fees, Delinquent Assessments, and Expenses of Enforcement.
  (a) All costs and expenses, including reasonable attorneys' fees, incurred by or on behalf of the association for: (1) Collecting any delinquent assessments against...

D. Alternative Dispute Resolution

• 514b-161 Mediation.
  (a) If an apartment owner or the board of directors requests mediation of a dispute involving the interpretation or enforcement of the association of...
• 514b-162 Arbitration.
  (a) At the request of any party, any dispute concerning or involving one or more unit owners and an association, its board, managing agent,...
• 514b-163 Trial De Novo and Appeal
  . (a) The submission of any dispute to an arbitration under section 514B-162 shall in no way limit or abridge the right of any party...

Last modified: October 27, 2016