A mainland-based time share developer operates a plan with units located in both California and Hawaii. The developer's California attorney advises that under California law, purchasers have only three days to rescind a time share contract. The developer applies the three-day rescission period to all purchasers, including those buying Hawaii units. A Hawaii purchaser attempts to rescind on the fifth calendar day after signing. Which of the following correctly describes the outcome under Hawaii law?
Correct Answer
B) The rescission is valid because HRS Chapter 467B provides a seven-day rescission right that cannot be reduced by contract or by application of another state's law to Hawaii time share transactions
Under HRS Chapter 467B, the seven-day right of rescission is a mandatory statutory protection applicable to time share transactions involving Hawaii properties. This right cannot be reduced, waived, or overridden by contract, by the application of another state's law, or by a developer's choice to impose a shorter rescission period from a different jurisdiction. Because the units are located in Hawaii, HRS Chapter 467B governs the transaction, and the purchaser's attempt to rescind on the fifth calendar day is well within the statutory period and is therefore valid.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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