Haw. Code R. § 16-106-20

Current through September, 2024

Section 16-106-20 - Mutual right to cancel contract

(a) A developer or purchaser may cancel the contract to purchase an interest or interests in a time share plan by giving the other party written notification within seven calendar days after execution of the sales contract or after the purchaser's receipt of the disclosure statement for the time share plan, whichever occurs later. The notice of cancellation shall be effective upon mailing or delivery to the other party at the address specified on the contract.

(b) Within fifteen business days after the date the notice of cancellation of the contract is received, the seller shall return all payments made by the purchaser and the purchaser shall return in good condition all materials received, reasonable wear and tear excepted; provided that if these materials are not returned, the developer may deduct the reasonable value of the same not to exceed $25 and return the balance to the purchaser.

(c) A developer or sales agent shall furnish each purchaser at the time the contract for purchase of an interest or interests in a time share plan is signed the following cancellation notice prepared in ten point bold face type:

NOTICE OF MUTUAL RIGHT OF

CANCELLATION OF

TIME SHARE PURCHASE

___________________

Date contract signed

___________________

Date disclosure statement received

YOU OR THE DEVELOPER MAY CANCEL THIS TRANSACTION WITHIN SEVEN (7) CALENDAR DAYS AFTER EXECUTION OF THE CONTRACT OR AFTER YOUR RECEIPT OF THE TIME SHARE DISCLOSURE STATEMENT, WHICHEVER OCCURS LATER, AND YOU SHALL BE ENTITLED TO A REFUND WITHIN FIFTEEN (15) BUSINESS DAYS AFTER THE DATE THE NOTICE OF CANCELLATION IS RECEIVED. YOU ARE REQUIRED WITHIN FIFTEEN (15) BUSINESS DAYS AFTER YOU SEND THIS CANCELLATION NOTICE TO THE DEVELOPER, TO RETURN TO THE DEVELOPER ALL SALES MATERIALS (SUCH AS YOUR SALES CONTRACT, DISCLOSURE STATEMENT, ETC.), IN GOOD CONDITION, REASONABLE WEAR AND TEAR EXCEPTED. IF YOU DO NOT RETURN THESE MATERIALS BY THIS DATE, THEN THE DEVELOPER IS ENTITLED TO DEDUCT UP TO $25 FROM YOUR REFUND.

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TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM TO

________________,at________________,

Name of seller Address of seller

NO LATER THAN MIDNIGHT OF__________.

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I HEREBY CANCEL THIS TRANSACTION.

__________________

Purchaser's signature

__________________

Date

__________________

Purchaser's signature

The developer or sales agent shall complete all of the information required in the notice of cancellation, except for the date of cancellation and purchaser's signature.

Haw. Code R. § 16-106-20

[Eff 11/15/80; am and comp 3/28/85; am and comp 8/30/85; am and comp 11/29/85; comp 6/5/87; comp 3/7/88; comp 9/15/90] (Auth: HRS § 514E-13) (Imp: HRS §§ 514E-8, 514E-9, 514E-11.1)