HB 2444 Summary

• Creates a new regulatory framework for lease-purchase agreements for real property by adding Part to Chapter 481 of Hawaii Revised Statutes, defining key terms including "lease-purchase agreement," "landlord," "tenant," and "consummation."

• Requires landlords to record lease-purchase agreements with the bureau of conveyances and provide tenants with file-marked copies before any payment is due.

• Mandates landlord disclosure of property description, payment schedule, total acquisition cost, ownership contingencies, maintenance responsibilities, and any mortgages or liens in writing using at least 10-point type with contrasting colors.

• Requires advertisements referencing lease-purchase agreements to clearly disclose that it is a lease-purchase transaction, state the total payments needed for ownership, and clarify that tenants acquire no ownership rights if full payment is not made.

• Allows tenants to sue for actual damages, counterclaim against landlords, and recover costs and reasonable attorney's fees for violations; establishes violations as unfair or deceptive practices; permits courts to refuse enforcement of unconscionable agreements.