CONFERENCE COMMITTEE REP. NO. 124-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2861

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2861, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EXCLUSIVE LISTING AGREEMENTS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Make certain long-term exclusive listing agreements for the sale of residential real property void and unenforceable under the state law that governs unfair and deceptive practices;

(2) Prohibit the recording or filing of exclusive listing agreements of any duration with the Bureau of Conveyances; and

(3) Establish certain remedies for violations.

Your Committee on Conference finds that exclusive listing agreements are agreements that require a homeowner to grant exclusive listing rights for a property over a certain period of time, typically in exchange for a nominal upfront payment. Having been known to last up to forty years, these exclusive listing agreements--which are recorded as liens that run with the property--can impede the owner's ability to sell, refinance, or transfer the property can likewise subject future owners to the agreement without notice. Your Committee on Conference finds that many consumers are enticed into entering these complex agreements without a full understanding of the consequences because companies often deceptively advertise their terms or fail to fully disclose them. Accordingly, it is necessary to prevent unfair exclusive listing agreements from becoming prevalent in the State, and therefore this measure makes certain long-term exclusive listing agreements for the sale of residential real property void and unenforceable.

Your Committee on Conference has amended this measure by inserting an effective date of November 1, 2024.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2861, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2861, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ DAVID A. TARNAS Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ ANGUS L.K. MCKELVEY Co-Chair
____________________________ SCOTT Y. NISHIMOTO Co-Chair