2026-09-10 · Hawaii · Legislation · Did not pass

Hawaii sellers routinely face a stack of association charges at closing that nobody itemises in advance. A detailed bill to change that was referred in January and never heard.¹

SB 2878 (2026) would have added a new section to HRS ch. 421J with parallel condominium coverage. Last action: “1/30/26: Referred to CPN.”

The transfer fee rules it proposed

• Transfer fees chargeable only to recover reasonable and actual costs of administrative services directly related to the sale or transfer.
• Flat fees permitted only if a reasonable estimate of actual costs based on historical data.
• Any transfer fee exceeding $350 must be supported by documentation of the actual costs incurred.
• No fee that results in a profit, or that covers unrelated costs or services not provided.
• Unspent transfer fees reimbursed to the owner within ten days of completion of the transfer.

The disclosure rules

Before closing, the association or managing agent would have had to give the seller, buyer and escrow a written itemised disclosure of estimated withholdings, prorations and pass-through charges — sewer fees, water fees, utility charges, unpaid assessments and other association obligations — identifying each category, the estimated amount and the basis.

And the enforcement edge: no undisclosed withholding could be collected at closing without documentation of actual cost or legal obligation.

1. SB 2878 (2026), Hawaii State Legislature status feed ↩
2. SB 2878 (2026) — bill text ↩
3. Caven v. Certified Management, Inc., No. SCWC-19-0000047, Hawaii Supreme Court, September 5, 2025 ↩