Key Takeaways
- HRS Chapter 514B governs condominium operations, sales, and buyer protections in Hawaii
- Buyers of new condos must receive a public report and have a 30-day right of rescission
- Resale buyers must receive disclosure documents and have time to review before closing
- Association documents including declaration, bylaws, and house rules must be provided to buyers
- Reserve studies and budget disclosures are required for condo associations
Last updated: January 2026
Hawaii Condominium Law (HRS 514B)
HRS Chapter 514B is Hawaii's comprehensive condominium law, covering everything from developer requirements to resale disclosures.
Important: Condominiums are extremely common in Hawaii, making HRS 514B knowledge essential for the state exam.
New Condominium Sales
Developer Requirements
| Requirement | Description |
|---|---|
| Public Report | Required before sales begin |
| DCCA review | Real Estate Branch reviews offering |
| Buyer protections | Extensive disclosure requirements |
| Escrow | Deposits held in escrow |
Public Report Contents
| Item | Description |
|---|---|
| Developer information | Name, address, experience |
| Project description | Units, common elements, amenities |
| Budget | Estimated operating costs |
| Documents | Declaration, bylaws, rules |
| Warranties | Construction warranties provided |
| Risk factors | Material issues affecting project |
Buyer's Right of Rescission
For new condo purchases:
| Timeline | Right |
|---|---|
| 30 days | From receipt of public report |
| Written notice | Must notify developer in writing |
| Refund | Full deposit returned |
| No penalty | Cannot be penalized for rescinding |
Resale Disclosures
Required Documents
Sellers must provide buyers with:
| Document | Description |
|---|---|
| Declaration | Legal document creating condo |
| Bylaws | Association governance rules |
| House rules | Day-to-day living rules |
| Financial statements | Association's financial condition |
| Budget | Current operating budget |
| Reserve study | Condition of major components |
Association Documents
Declaration
The declaration is the master document:
| Element | Description |
|---|---|
| Legal description | Property boundaries |
| Unit boundaries | What each owner owns |
| Common elements | Shared property |
| Limited common elements | Assigned to specific units |
| Percentage interests | Ownership shares |
| Use restrictions | Permitted uses |
Bylaws
Bylaws govern association operations:
| Provision | Description |
|---|---|
| Board of Directors | Election, powers, duties |
| Meetings | Annual, special, board meetings |
| Voting | Owner voting rights |
| Assessments | How dues are calculated |
| Officers | President, treasurer, secretary |
House Rules
Day-to-day regulations:
| Topic | Examples |
|---|---|
| Pet policies | Size, type, number limitations |
| Parking | Assigned spaces, guest parking |
| Noise | Quiet hours, restrictions |
| Common areas | Pool, gym, lobby use |
| Rentals | Restrictions on renting units |
Assessments and Reserves
Regular Assessments
| Feature | Description |
|---|---|
| Monthly dues | Operating expenses |
| Calculation | Based on percentage interest |
| Increases | Board may increase within limits |
| Budget | Annual budget required |
Special Assessments
| Feature | Description |
|---|---|
| Purpose | Major repairs, improvements |
| Approval | May require owner vote |
| Payment | May be paid over time |
| Lien | Unpaid assessments become lien |
Reserve Requirements
HRS 514B requires associations to:
| Requirement | Details |
|---|---|
| Reserve study | Assess major component conditions |
| Reserve funding | Set aside funds for future repairs |
| Disclosure | Report reserve status to buyers |
| Update | Periodic review of reserve adequacy |
Buyer Protections
Resale Disclosure Certificate
For resale transactions, sellers must provide:
| Information | Description |
|---|---|
| Monthly assessment | Current dues amount |
| Special assessments | Pending or approved |
| Reserve fund | Current balance |
| Pending litigation | Any lawsuits |
| Insurance | Coverage provided |
| Violations | Any outstanding violations |
Buyer Review Period
| Provision | Description |
|---|---|
| Document delivery | Before or after contract |
| Review time | Time to review documents |
| Right to cancel | If documents not provided |
| Remedy | Rescission or damages |
Common Element Issues
Common Elements
| Type | Description |
|---|---|
| General common elements | Owned by all owners (lobby, roof) |
| Limited common elements | Assigned to specific units (lanai, parking) |
Maintenance Responsibility
| Element | Responsibility |
|---|---|
| Common elements | Association |
| Limited common elements | Usually association, may vary |
| Unit interior | Owner |
| Windows/doors | Per declaration |
Enforcement and Disputes
Assessment Collection
| Step | Action |
|---|---|
| Past due | Late fees apply |
| Lien | Association can file lien |
| Foreclosure | Can foreclose for unpaid assessments |
| Priority | Some assessments have priority |
Dispute Resolution
| Method | Description |
|---|---|
| Mediation | Required for some disputes |
| Arbitration | May be required by documents |
| Litigation | Court action if necessary |
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Test Your Knowledge
How long is the right of rescission for a new condominium purchase in Hawaii?
A
B
C
D
Test Your Knowledge
Which Hawaii statute governs condominium operations and sales?
A
B
C
D