In Hawaii, a Notice of Pendency of Action, or Lis Pendens, is a written notice, filed in the Bureau of Conveyances, stating that there is a pending lawsuit regarding the ownership of that specific real property. Although seemingly simple, a Notice of Pendency of Action is an enormous encumbrance on a piece of property, and should be used sparingly. In fact, once the lis pendens is filed, the property becomes nearly impossible to transfer because a buyer will not purchase property whose title is in question. HRS § 634–51, which authorizes a Notice of Pendency of Action provi
Hawaii Real Estate Litigation
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A person may be held liable for the acts of another if an agency relationship is established. According to the Hawaii Supreme Court, “an agency relationship may be created through actual or apparent authority.” Cho Mark Oriental Food, Ltd. v. K & K Intern., 73 Haw.
If a person or entity has been deceived, Hawaii law provides for a means of redress. Under Hawaii’s doctrine of fraudulent inducement, if a person enters into a contract due to the misrepresentations of the other contracting party, the person lied to may ask the court to invalidate the terms of the contract. The Hawaii Supreme Court recognizes the elements of fraudulent inducement to be as follows:
We successfully represented property owners damaged by the Ka Loko Dam breach that occurred on Kauai on March 14, 2006. See our previous blogs dated November 3, 2009 and September 26, 2007. The Ka Loko Dam breach killed seven people. The Dam Safety Act (HRS § 179D-1, et. al.) was revised in 2007 as a result of the Ka Loko Dam breach.
The Real Estate Settlement Procedures Act (RESPA), 12 U.S.C.A Section 26, et seq, was enacted by Congress to “effect certain changes in the settlement process for residential real estate that will result:”
(1) in more effective advance disclosures to home buyers and sellers of settlement costs;
(2) in the elimination of kickbacks or referral fees that tend to increase unnecessarily the costs of certain settlement services;
The Truth in Lending Act (TILA) found in 15 U.S.C.A. section 1601, et. seq. was enacted to “protect consumers and promote the ‘informed use of credit.'” Washington v Americquest Mortgage.Co., 2006 WL 1980201, *6 (N.D.Ill., 2006). As such, TILA requires creditors to conspiciously disclose certain terms and costs information prior to a credit transaction. Id. This information includes, but is not limited to, the annual percentage rate and “finance charge,” order of disclosures, and use of different terminology. 15 U.S.C.A. section 1632(a).
This blog will discuss (i) whether the seller of a home has a duty to disclose material facts regarding the property to a buyer and (ii) whether the realtor and/or seller of a home has a duty to disclose material facts regarding the property to a buyer. The short answer is that a seller has an absolute duty to disclose material facts to the buyer. Although this obligation is usually handled by the seller in the disclosure statement, the legal obligation arises from the common law and a variety of statutes.
In my previous blog I discussed whether, under Hawaii law, a homeowner must pay for services provided by an unlicensed contractor. This blog will consider whether a subsequent procurement of a Hawaii license by a previously unlicensed contractor can validate a contract that was agreed upon while the contractor was still unlicensed.
We are occasionally asked whether an unlicensed contractor is entitled to collect compensation for work provided to a contracting party. A corollary of this issue is whether the monies already paid to the contractor must be refunded to the contracting party.