HRS §667-99
What happens if the winning bidder backs out
If the winning bidder at a public sale does not follow the sale terms or finish buying within 45 days, they lose their downpayment. The association uses that money to pay its legal fees and foreclosure costs, then any leftover goes toward what the bidder owed. The association can then pick the next highest bidder or start a new sale.
condominium associations
The statute, as written — Successful bidder's failure to comply; forfeiture of downpayment
If the successful bidder later fails to comply with the terms and conditions of the public sale or fails to complete the purchase within forty-five days after the public sale is held, the downpayment shall be forfeited by that bidder. The forfeited downpayment shall be credited by the association first towards the association's attorney's fees and costs, then towards the fees and costs of the power of sale foreclosure, and any balance towards the moneys owed to the association. The association, in its discretion, may then accept the bid of the next highest bidder who meets the requirements of the terms and conditions of the public sale or may begin the public sale process again.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.