On May 1, HWI LEG passed bill on unfair exclusive listing agreements.
HWI LEG passed bill SB 2861 to prohibit unfair long-term exclusive listing agreements.
Adds new section to Part I, Chapter 481B, Hawaii Revised Statutes (HWI LEG 481B).
Background
Legislature finds that companies are targeting vulnerable property owners to sign long-term exclusive listing agreements in exchange for a nominal payment upfront.
Agreements are then recorded as liens; these complex contracts are essentially high-interest loans that make selling, refinancing, transferring property difficult for owners.
Bill Provisions
Makes certain long-term exclusive listing agreements for the sale of residential real property void and unenforceable under law governing unfair and deceptive practices.
Agreements include those that last longer than 12 months, purport to run with land, create a lien, or allow assignment of right to provide services without owner consent.
Prohibits the recording or filing of exclusive listing agreements of any duration.
Establishes certain remedies for persons subject to unfair exclusive listing agreements.
Legislative History
On Jan. 19, 2024, bill introduced in the Senate; on Mar. 5, 2024, bill passed in Senate.
On Mar. 5, 2024, bill introduced in House; on Apr. 4, 2024, bill passed in House.
On May 1, 2024, bill passed final reading as amended in both Senate and House.
Effectiveness
If enacted, bill takes effect on Nov. 1, 2024.
Jul. 2024 HWI LEG Governor Approval
On Jul. 2, 2024, HWI LEG reported governor signed bill as Act 176, effect Nov 1, 2024.
Regulators
HWI LEG
Entity Types
CNSM; Corp; MG Orig
Reference
Act 176, 7/2/2024; Bill SB2861 SD1 HD1 CD1, 5/1/2024; Citation: HWI LEG 481B;
