Hawaii Revised Statutes 480E-4 – Right to cancel a distressed property consultant contract
“YOU, THE OWNER, MAY CANCEL THIS TRANSACTION AT ANY TIME BEFORE THE DISTRESSED PROPERTY CONSULTANT HAS FULLY PERFORMED EACH AND EVERY SERVICE THE DISTRESSED PROPERTY CONSULTANT CONTRACTED TO PERFORM OR REPRESENTED WOULD BE PERFORMED. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.
(Name of the distressed property consultant) (or anyone working for or with the distressed property consultant) CANNOT:
Terms Used In Hawaii Revised Statutes 480E-4
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Distressed property: means any residential real property that:
(1) Is in foreclosure or at risk of foreclosure because payment of any loan that is secured by the residential real property is more than sixty days delinquent;
(2) Had a lien or encumbrance charged against it because of nonpayment of any taxes, lease assessments, association fees, or maintenance fees;
(3) Is at risk of having a lien or encumbrance charged against it because the payments of any taxes, lease assessments, association fees, or maintenance fees are more than ninety days delinquent;
(4) Secures a loan for which a notice of default has been given;
(5) Secures a loan that has been accelerated; or
(6) Is the subject of any solicitation, representation, offer, agreement, promise, or contract to perform any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2
- Distressed property consultant: means any person who performs or provides, or attempts to perform or provide, or who arranges for others to perform or provide, or who assists others to perform or provide, or who makes any solicitation, representation, or offer to perform or provide, any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2
- Distressed property consultant contract: means any agreement or obligation between an owner or agent of an owner of a distressed property and a distressed property consultant. See Hawaii Revised Statutes 480E-2
- Fully performed: means :
(1) In the case of relief requiring the consent of any lending party, the distressed property consultant or attorney has:
(A) Carried out and provided all of the services the distressed property consultant or attorney contracted to perform or represented would be performed; and
(B) Obtained from the lending party a written offer for mortgage assistance relief that the consumer has accepted by executing the written contract. See Hawaii Revised Statutes 480E-2
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
“NOTICE OF CANCELLATION
(Enter date contract last signed)
(Date)
YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, AT ANY TIME BEFORE THE DISTRESSED PROPERTY CONSULTANT HAS FULLY PERFORMED EACH AND EVERY SERVICE THE DISTRESSED PROPERTY CONSULTANT CONTRACTED TO PERFORM OR REPRESENTED WOULD BE PERFORMED.
TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS NOTICE OF CANCELLATION, OR ANY OTHER WRITTEN NOTICE OF CANCELLATION TO (Name of distressed property consultant) AT (Address where notice of cancellation is to be delivered).
I HEREBY CANCEL THIS TRANSACTION.
________________________________
(Date)
_____________________________
(Owner’s signature)”