Bill > SB2878

This bill aims to increase transparency and fairness in transfer fees charged by condominium associations and planned community associations, which are groups that manage shared properties and enforce rules for residents. It establishes that these associations or their managing agents can only charge transfer fees to cover the actual administrative costs associated with selling or transferring ownership of a unit, and these fees must directly relate to the services provided. Flat transfer fees are allowed only if they are a reasonable estimate of actual costs based on past data, and any transfer fee exceeding $350 must be supported by documentation of the incurred costs. Associations are prohibited from charging fees that result in a profit, for unrelated services, or for services not actually rendered, and any unspent portion of a transfer fee must be returned to the owner within ten days of the transfer's completion. Furthermore, before a sale or transfer closes, the association or managing agent must provide a written, itemized disclosure to the seller, buyer, and closing agent detailing all estimated withholdings, prorations, or pass-through charges, such as sewer fees, water fees, utility charges, unpaid assessments, and other association-related obligations, specifying the estimated amount and the basis for it, with no undisclosed withholdings allowed unless they are documented as actual costs or legally required.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2878&year=2026