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A buyer in Hawaii signs a purchase contract for a new single-family home. The contract does not mention a solar water heater. At closing, the buyer discovers the home was built without a solar water heater system. The seller argues that the omission from the contract means there was no agreement to include one. Which of the following is most accurate under Hawaii law?

Correct Answer

C) Hawaii law under HRS Chapter 196B requires solar water heaters on new single-family residential buildings, so the builder/seller may be in violation of state law regardless of the contract terms

HRS Chapter 196B requires that new single-family residential buildings in Hawaii be equipped with solar water heater systems unless a specific exemption is granted. This is a statutory mandate, not merely a contractual term. The absence of a solar water heater in a new single-family home may constitute a violation of state law by the builder/seller, independent of whether the purchase contract mentioned it. Hawaii is the only state with this statewide mandate for new single-family homes.

Answer Options
A
The seller is correct; since the contract did not mention a solar water heater, there is no obligation to install one
B
The buyer may rescind the contract because the absence of a solar water heater constitutes a latent defect requiring disclosure under HRS Chapter 508D
C
Hawaii law under HRS Chapter 196B requires solar water heaters on new single-family residential buildings, so the builder/seller may be in violation of state law regardless of the contract terms
D
The buyer's only remedy is to request a price reduction at closing to cover the cost of installing a solar water heater after purchase

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Related Topics & Key Terms

Key Terms:

solar_water_heaterHRS_196Bnew_constructionstatutory_requirementpurchase_agreementHawaii_unique

Related Concepts

Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.

The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.

A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.

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