Hawaii Revised Statutes 514B-89 – Sales contracts before completion of construction
Terms Used In Hawaii Revised Statutes 514B-89
- Completion of construction: means the earliest of:
(1) The issuance of a certificate of occupancy for the unit;
(2) The date of completion for the project, or the phase of the project that includes the unit, as defined in section 507-43;
(3) The recordation of the "as built" amendment to the declaration that includes the unit;
(4) The issuance of the architect's certificate of substantial completion for the project, or the phase of the project that includes the unit; or
(5) The date the unit is completed so as to permit normal occupancy. See Hawaii Revised Statutes 514B-3
- Contract: A legal written agreement that becomes binding when signed.
- conversion: means the submission of a structure to a condominium property regime more than twelve months after the completion of construction; provided that structures used as sales offices or models for a project and later submitted to a condominium property regime shall not be considered to be converted structures. See Hawaii Revised Statutes 514B-3
- Developer: means a person who undertakes to develop a real estate condominium project, including a person who succeeds to the interest of the developer by acquiring a controlling interest in the developer or in the project. See Hawaii Revised Statutes 514B-3
- Unit: means a physical or spatial portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described in the declaration or pursuant to § 514B-35, with an exit to a public road or to a common element leading to a public road. See Hawaii Revised Statutes 514B-3
If a sales contract for a unit is signed before the completion of construction or, in the case of a conversion, the completion of any repairs required to comply with § 514B-5, the sales contract shall contain an agreement of the developer that the completion of construction shall occur on or before the completion deadline, and the completion deadline shall be referenced in the developer’s public report. The completion deadline may be a specific date, or the expiration of a period of time after the sales contract becomes binding, and may include a right of the developer to extend the completion deadline for force majeure as defined in the sales contract. The sales contract shall provide that the purchaser may cancel the sales contract at any time after the specified completion deadline, if completion of construction does not occur on or before the completion deadline, as the same may have been extended. The sales contract may provide additional remedies to the purchaser if the actual completion of construction does not occur on or before the completion deadline as set forth in the contract.