Bill Text: HI SB2488 | 2024 | Regular Session | Introduced

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Bill Title: Relating To Rent-to-own Contracts.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-24 - Referred to CPN, JDC. [SB2488 Detail]

Download: Hawaii-2024-SB2488-Introduced.html

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THE SENATE	S.B. NO.	2488
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to rent-to-own contracts.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Chapter 667, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§667-    Rent-to-own contracts.  (a)  This chapter and the Single Family Mortgage Foreclosure Act of 1994, P.L. 103-327, shall apply to all rent-to-own contracts for real property in the State; provided that this section shall not apply to the rent-to-own program under section 201H-181.

     (b)  For purposes of this section, "rent-to-own contract for real property" means any lease agreement entered into between a seller of real property and the purchaser of real property in which:

     (1)  The seller and purchaser agree to a purchase price for the real property;

     (2)  The purchaser resides on the real property;

     (3)  The purchaser makes periodic rent payments to the seller of the real property that is at least twice the market rate of rent for similar dwellings;

     (4)  An agreed upon portion of each periodic rent payment is applied towards the purchase price to the credit of the purchaser; and

     (5)  The seller retains legal title of the real property until the payment of the agreed upon purchase price by the purchaser at which point the title to the real property shall transfer from the seller to the purchaser."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

 

Report Title:

Rent-to-Own Contracts; Real Property; Foreclosure Procedures

 

Description:

Subjects certain rent-to-own contracts for real property in the State to state and federal foreclosure procedures.

 

 

 

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