Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 106 - TIME SHARING › Subchapter 2 - REGISTRATION REQUIREMENTS › Section 16-106-4 - Registration required; developer, acquisition agent, sales agent, OPC, plan manager, exchange agent, sales agent employees, and independent contractors

Current through June, 2024
(a) In addition to
				the requirements set forth in section
				514E-9, HRS,
				a developer shall file the following with the director for the purpose of
				registering the time share plan to be offered by the developer; provided that
				an application submitted by a developer who has only an option to purchase
				property to be offered under a time share plan shall not be acceptable; and
				provided further that no application shall be deemed complete, nor shall the
				same be accepted for registration, unless the prescribed information is
				provided separately tabbed and numbered in the exact order as follows:
(1) An application for registration on a form
				prescribed by the director;
(2) A
				disclosure statement meeting the requirements of section
				514E-9, HRS,
				and section 16-106-3;
(3) A current
				financial statement not more than ninety days old at the time of submission of
				the application, prepared in accordance with generally accepted accounting
				principles and certified by the developer or a certified public accountant to
				be true and correct in all respects and to fairly, completely, and accurately
				represent the financial condition of the subject thereof as of the respective
				date thereof; provided that in lieu of this financial statement, an audited
				financial report may be submitted if it is the most current report of the
				subject thereof and is not more than fifteen months old at the time of
				submission of the application. Any false, misleading, or fraudulent financial
				statement or report submitted by the developer shall be grounds for
				cancellation, suspension, or revocation of a registration;
(4) For each unit to be registered under the
				time share plan, a policy of title insurance, preliminary title report,
				abstract of title, or certificate of title not more than sixty days old at the
				time of submission of the application; provided that the policy of title
				insurance, preliminary title report, abstract of title, or certificate of title
				discloses the status of ownership of the unit and any and all liens and
				encumbrances affecting the unit;
(5) Copies of all encumbrances against title
				to each unit to be registered under the time share plan;
(6) If a corporation, a certified copy of the
				articles of incorporation and bylaws thereof; if a partnership or joint
				venture, a certified copy of the partnership registration and partnership
				agreement;
(7) If a corporation,
				partnership, or joint venture, a certificate of good standing issued by the
				business registration division of the department not more than thirty days
				before the date of submission of the application;
(8) A copy of an executed escrow agreement
				meeting the requirements of chapter
				514E, HRS, and as provided for in
				subchapter
				9;
(9) The name and address of the person in the
				State authorized to receive service of process on behalf of the developer;
				provided that written notification of any change of this name or address shall
				be submitted to the director within twenty days of any change;
(10) As required by section 16-106-45,
				confirmation by the respective county that the time share plan meets the
				geographic limitation requirements of section
				514E-5,
				HRS; provided that this confirmation of zoning shall be obtained from the
				respective county not more than thirty days before the date of submission of
				the application. The director shall prescribe a form to be completed by the
				proper county authority evidencing this confirmation of zoning;
(11) A complete statement as to the manner in
				which the time share plan complies with the requirements of section
				514E-6,
				HRS, governing time sharing in projects;
(12) A complete statement, including a
				specific citation to the appropriate provision of section
				514E-19,
				HRS, of the method which the developer intends to use to protect purchasers
				against underlying blanket liens; provided that the statement required under
				this subsection shall not be deemed complete unless it includes both sufficient
				detail to enable the director to determine the precise means by which the
				requisite protection will be provided and copies of all pertinent agreements
				and materials relevant to the proposed method of protection;
(13) As required by sections 16-106-25 and
				16-106-26, if the time share plan is a "preexisting plan" as defined in this
				chapter, evidence of the creation of the plan prior to June 29, 1980, and the
				filing of the plan not later than December 31, 1980, and the number of
				interests in the plan, if any, which were previously sold;
(14) If applicable, a copy of the declaration
				of horizontal property regime for the subject property, as recorded and
				subsequently amended, the bylaws of the association of apartment owners and
				house rules of the association, and for any project which is not registered
				with the state real estate commission under chapter
				514A, HRS, a copy of the project's
				condominium map;
(15) If
				applicable, a copy of the declaration of covenants, conditions and
				restrictions, as recorded and subsequently amended, which establishes the time
				share plan;
(16) A copy of the
				petition and charter of incorporation for the time share owners association
				required by section
				514E-29,
				HRS, accepted by the department, as well as the bylaws of the association or
				club;
(17) A completed specimen
				copy of the notice of mutual right of cancellation of time share purchase
				prescribed in section 16-106-20(c);
(18) A completed specimen copy of the
				reservation agreement, contract of sale, or agreement of sale to be used in
				connection with the sale of time share interests;
(19) If applicable, a completed specimen copy
				of the deed, lease, or other instrument to be used to convey the property to
				the purchaser;
(20) A specimen copy
				of the purchaser's declaration of understanding of the plan and the contract,
				if any;
(21) A copy of the executed
				management agreement;
(22) A copy
				of each executed sales agency or broker listing agreement; provided that the
				commission schedule may be omitted from such agreement;
(23) A copy of the executed contract with an
				exchange agent, if applicable;
(24)
				As required by section 16-106-38, copies of any advertising or promotional
				materials to be used in connection with the marketing of time share interests;
				and
(25) The registration fee.
Pursuant to section
				  514E-10.5,
				  HRS, the director may contract with private consultants in connection with the
				  review of the filing required of time share developers under section
				  514E-10(a),
				  HRS, and this section, the cost of the review to be borne by each developer;
				  provided that this review shall not affect the consultant review authorized
				  under section
				  514E-27,
				  HRS, which the director may request for filings which encompass alternative
				  arrangements for purchaser protection. The consultant fees are in addition to
				  the registration fees specified in chapter 16-53, Hawaii Administrative
				  Rules.