A time share developer in Hawaii includes a clause in the purchase contract stating: 'Purchaser acknowledges that by initialing this paragraph, purchaser waives any right of rescission provided under Hawaii law.' A buyer initials the clause and later attempts to rescind within the seven-day period. Under HRS Chapter 467B, which of the following is correct?
Correct Answer
A) The waiver clause is unenforceable, and the buyer may still rescind within the seven-day statutory period
Under HRS Chapter 467B, the seven-day right of rescission for time share purchasers is a mandatory statutory protection that cannot be waived by contract. Any contractual provision purporting to waive or limit this statutory rescission right is void and unenforceable as against public policy. The buyer's initialing of the waiver clause has no legal effect, and the buyer retains the full seven-day right of rescission regardless of what the contract states.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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