Required disclosures when selling a home

(a) Requirement. A seller of residential real property shall comply with the requirements of this section. These requirements are in addition to the disclosure requirements in HRS Chapter 508D. (b) Short-term rental disclosure. The seller shall provide to the buyer, within the time period specified in subsection (d) and on a form prescribed by the department, a disclosure, stating whether or not the operation of a short-term rental is a legal use for the residential real property being sold, and the reasons therefor. The department shall make the disclosure form available on its website. The disclosure form must bear the following statement: "THE REPRESENTATIONS ON THIS DOCUMENT ARE SOLELY THOSE OF THE SELLER. THE INFORMATION HAS NOT BEEN CONFIRMED BY ANY AGENCY OF THE CITY AND COUNTY OF HONOLULU." (c) Evidence of legal use as short-term rental. If the residential real property is being used as a short-term rental on the date of the disclosure document required by subsection (b), the seller shall also provide the following to the buyer within the time period specified in subsection (d): (1) The applicable government permit number, such as a nonconforming use certificate number, or short-term rental registration number; and (2) Tax clearance certificates evidencing payment of general excise taxes and transient accommodation taxes owed to date. The department may allow this information to be provided on or as part of the disclosure form required by subsection (b). (d) Time period for disclosure. Prior to the execution of a real estate purchase contract by the buyer, the seller shall deliver to the buyer the documents and information required under subsections (b) and (c). (e) Submittal to the department. If, pursuant to subsection (b), the seller discloses to the buyer that the operation of a short-term rental is a legal use for the residential real property being sold, then within seven days after the closing of the sale of the residential real property, the seller shall submit to the department a document identifying the subject property by street address and tax map key number, and containing copies of the documents and information delivered to the buyer pursuant to subsections (b), (c), and (d).