Legal Question in Real Estate Law in Hawaii

Hawaii timeshare sale

I have been asked by my in-laws to assist with their sale of a Hawaii timeshare. After inquiring of a Hawaii attorney, I was informed of the following and would like a 2nd opinion:

1. a timeshare resale by the owner requires some kind of disclosure statement to be delivered to the buyer or the standard 7 day rescission period becomes unlimited. statement must include a lot of info that may only be available to the developer.

2. a title search is required even if the buyer doesn't want it because the deed itself has to list all easements, etc.

3. the deed must be recorded in two places--land court and bureau of conveyances, I think

4. the buyer must withhold 5% of sales price (not gain) because my in-laws are not HI residents (even if they are selling for a small amount and at a loss).

Please advise as to whether this information is accurate. Many thanks!


Asked on 8/09/04, 10:07 am

1 Answer from Attorneys
Tonia Troutwine, Esquire - Troutwine Law Group. LLC

Re: Hawaii timeshare sale

1. The buyer should have full disclosure and you should comply with all laws of HI. However, to not provide it may or may not allow unlimited rescission, but it will definitely be a factor in considering rescission of the deal if the buyer should change his/her mind.

2.A title search is always preferred, however it depends on how you are transferring title. To transfer via quitclaim deed, does not require a title search and if requested it is usually paid for by the buyer and included in the closing costs.

3.The deed should be recorded after the sale.

4.Any withholding should be factored into the sale of the property, so that you are not selling at a loss.

A good reputable licensed local real estate agent could help you to find a buyer so that your parents are not selling at a loss and will be able to help guide you to an attorney and through a lot of the paperwork.

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Answered on 8/09/04, 12:07 pm


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