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HRS §490:2A-304

What rights a new renter gets from the original landlord

This section explains what rights a new renter gets when a landlord rents out goods that are already under a lease. Usually, the new renter is bound by the original lease. But if the landlord is a merchant and the original renter gave the goods to the landlord, a new renter in the normal course of business can take the goods free of the original lease. Certificate of title rules also apply.

buyers

The statute, as written — Subsequent lease of goods by lessor

(a) Subject to section 490:2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (b) and section 490:2A-527(d), takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though: (1) The lessor's transferor was deceived as to the identity of the lessor; (2) The delivery was in exchange for a check which is later dishonored; (3) It was agreed that the transaction was to be a "cash sale"; or (4) The delivery was procured through fraud punishable as larcenous under the criminal law. (b) A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against that lessor obtains, to the extent of the leasehold interest transferred, all of that lessor's and the existing lessee's rights to the goods, and takes free of the existing lease contract. (c) A subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this State or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.