By Carol
C. Cummings
R, CRB, CRS, GRI, SRES, SFR Short Sale
& Foreclosure Resource Certified Agent 2010
Kaua`i’s real estate industry is constantly evolving under the jurisdiction of federal, state, and county legislation and regulatory agencies. Here are 3 recent law changes Kaua`i real estate professionals are required to abide by:
STATE LAW - Increase in Continuing Education Hours For Licensed Real Estate Brokers and Salespersons Governor Linda Lingle on March 23, 2010, signed Act 9 of the 2010 Legislative Session into law. The bill increases the minimum required continuing education hours for real estate brokers and salespersons from 10 hours to at least 20 hours for each biennium, effective on January 1, 2011. It is thought that the increased educational requirement will provide for more informed, educated professionals within the real estate industry and put Hawaii in similar educational requirements with the majority of the states. All CE courses must be approved by the Hawaii Real Estate Commission and real estate licensees are responsible for course fees charged by the providers. Additionally, licensees are not allowed to re-take courses previously used for CE requirements.
FEDERAL LAW - EPA Lead Renovation Rules To protect against the risk of lead dust associated with renovation of lead-based painted structures, the Environment Protective Agency issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in residences, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. Beginning in December 2008, the rule requires that contractors performing renovation, repair and painting projects that disturb lead-based paint provide a Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF) (20 pp, 3.3MB) lead hazard information pamphlet.
FEDERAL LAW - Protection for Tenants of Foreclosed Properties S. 896, the “Helping Families Save Their Homes Act of 2009” included some provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented. Previously, there were instances of the rental family having no idea the home was in delinquency or subject to foreclosure until their eviction.
Under the law, which went into effect on 05/20/09, tenants will have to receive 90-days notice prior to being evicted, when their rental home is foreclosed upon. In addition, tenants must be allowed to stay in the property through the end of their lease, with two exceptions:
* The new owner wants to occupy the property as a personal residence, and * There is no lease (month to month), or there is a lease but state law allows the lease to be terminated at any time upon notice.
Even under these exceptions, the tenants must be given 90-days before they can be evicted. Notification must be provided by the “immediate successor in interest”. The immediate successor can be bank (when they assume the home), and in other cases it may be the new owner. Much will depend upon state law.
This law will preempt existing state law, except if Hawaii state law offers greater protection.
The protections of this law apply only to tenants who have a written contract, the lease is not between family members, and the rent is at fair market rent for the property. Under any conditions, tenants may still be evicted if they violate the lease terms.
