S.B. 754 Summary

• Grants seven-day cancellation right to short-term product buyers in Hawaii with full refund of all amounts paid, with the right extending through midnight of the seventh calendar day after contract signing.

• Requires short-term product sellers to disclose in conspicuous type details about reservation availability, blackout dates, credit toward time share purchases, price locks, and transient accommodations tax obligations.

• Permits developers to receive early release of 90% of purchaser deposits from escrow after the seven-day cancellation period expires if a surety bond or irrevocable letter of credit is posted with the director and escrow agent.

• Requires surety bonds to guarantee refunds if developers fail to repay deposits as required, with the surety obligated to deposit funds within 30 days of demand by the state or escrow agent.

• Establishes 24-month maximum closing deadline for time share sales contracts (extendable with director approval) and allows purchasers to cancel if closing does not occur by the specified deadline.