Condos And TIMESHARES

Question 1

Course Overview
Explores condominium and timeshare law.
Provisions of condo property Act.
Condo elements, management and sales requirements.

Explanation of Timeshares plans and how they are regulated.

Information on prohibited and unfair trade practices in timeshare sales.

Answer 1

OBJECTIVES

1. Explain the difference between ownership of a cooperative and a condominium.
2. Describe the purpose of the condo declaration, by-laws, house rules and functions of an AOAO.
3. Decribe buyer’s rights prior to and after the purchase a condo from the developer.
4. Describe different types of timeshare plans and requirements a developer must meet when offering timeshares for sale or lease.
5. List prohibited activities and required conduct for any person engaged in the sale of a timeshare.
6. Explain the consequences a person may encounter for violating the timeshare laws.

Question 2

PLANNED UNIT DEVELOPMENTS (PUDS) and COOPS

puds : townhouses, cooperatives and condominiums.
They provide for more efficient use of land and
Reduced construction costs by placing a number of units
Side by side with shared walls or
All inside the same buildings

Answer 2

PLANNED Unit Developments. (HRS421J)

Each lot sold separately.

Open space property and property used in common by property owners is owned by a homeowners association. (HOA). All homeowners are members are members of the HOA.
PUDS may be zoned to allow a combination of various land uses( eg residential, commercial, retail,recreational) to serve needs of homeowners and may combine various housing types( eg detached, semi-detached, attached and/or multi-story units).

Question 3

TIME SHARE PLANS

Escrow Closing
An escrow for the sale of an interest in a timeshare plan may close only if:

Answer 3

1. The timeshare unit is conveyed to a trustee:
   Free and clear of any liens
2. For a timeshare ownership plan
   The timeshare interest is conveyed to the purchaser free and clear of any blanket liens

      If legal or equitable title is held by a person other than purchaser; a Notice of timeshare plan is RECORDED.
   
                 THE conveyance to purchaser may be subject to a blanket lien only if:
                         Every person holding an net rest in the blanket lien has executed and 
                          Recorded a non disturbance agreement. Or
                           The Director has accepted a surety bond or irrevocable letter of credit
                            That has been recorded with respect to the timeshare unit

3. The requirements of any alternative arrangements accepted by the Director have been met.

Question 4

Timeshare Right of Rescission. (HRS514E)

Answer 4

7 calendar days after execution of purchase. Contract or receipt of disclosure
Statement, either party may cancel without penalty.
Cancellation notice must be mailed or delivered to the other party with cancellation effective upon mailing/delivery to address specified on the contract.