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THE SENATE |
S.B. NO. |
2861 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO EXCLUSIVE LISTING AGREEMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. This Act shall be known, and may be cited, as the Exclusive Listing Agreements Act.
SECTION 2. The legislature finds that long-term exclusive listing agreements, and the recording of exclusive listing agreements, unfairly encumbers a property owner's title, reduces their equity, and has an anti-competitive effect on the sale of real estate.
Accordingly, the purpose of this Act is to:
(1) Prohibit exclusive listing agreements for the sale of real estate, including agreements to enter into any such agreement or arrangement, lasting longer than twelve months; and
(2) Prohibit the recording of exclusive listing agreements of any duration for the sale of real estate, including agreements to enter into the agreement or arrangement.
SECTION 3. Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§481B- Exclusive listing agreements; prohibited. (a) It is unlawful for an
exclusive listing agreement to last longer than twelve months from the date the
agreement was made.
(b) It is unlawful to present for
recording or filing, or otherwise attempt to record to file, with the bureau of
conveyances an exclusive listing agreement of any duration or any memoranda or
notice of an exclusive listing agreement.
(c) It is unlawful to enforce, or
attempt to enforce, an exclusive listing agreement that is made, or that is
presented for recording or filing with the bureau of conveyances, in violation
of this section.
(d) An exclusive listing agreement
that is made or that is presented for recording or filing with the bureau of
conveyances in violation of this section shall be void and unenforceable. An owner who entered into an exclusive
listing agreement may retain any consideration received thereunder.
(e) A violation of this section
shall be deemed an unfair or deceptive practice in accordance with section
480-2, and shall be subject to the provisions of chapter 480, as well as the
provisions of this chapter.
(f) For the purposes of this
section, "exclusive listing agreement" means a contract or agreement
providing an exclusive right to list or sell real estate, including a contract
or agreement to enter into an agreement or arrangement."
SECTION 4. Chapter 502, Hawaii Revised Statutes, is amended by adding a new section to part IV be appropriately designated and to read as follows:
"§502- Exclusive listing agreements; prohibited. (a) It is unlawful to present for
recording or filing, or otherwise attempt to record or file, with the bureau of
conveyances an exclusive listing agreement of any duration or any memoranda or
notice of such agreement. A violation of
this section shall be deemed a violation of section 481B- .
(b) For the purpose of this
section, "exclusive listing agreement" has the same meaning as
provided in section 481B- ."
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Exclusive Listing Agreements; Real Property; Prohibitions; Bureau of Conveyances; Unfair or Deceptive Practice
Description:
Makes it unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made. Makes it unlawful to present for recording or filing, or to otherwise attempt to record or file, an exclusive listing agreement of any duration.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.