Hawaii Timeshare Division in Divorce Two Step

A Hawaiian timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Removal is a two-step process; documents are first filed with the State of Hawaii and then with the resort management company.

Until one spouse is removed from title, both spouses will have access and use of the timeshare even after separation or divorce. Both are also responsible for the maintenance fees and property taxes. Until the former spouse is removed from title, the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death. 

Maintaining an accurate, timely and permanent record system of timeshare ownership is the responsibility of the State of Hawaii Bureau of Conveyances. Ownership change is by deed. A deed is an 8 ½ by 11 inch document.

The contents and format of the deed are strictly mandated by Hawaiian law. Any deviations can cause the deed to become invalid.

For instance, no wording may appear on the top three inches of the first page. On the first page the tax map key, internal control number and reference to the prior recorded document must appear. In the document, the legal description must also be provided.

In Hawaii a deed must have attached to it Form P-64B, ‘Exemption from Conveyance Tax.’ Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers due to divorce and dissolution of marriage are exempt from transfer tax. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

Once the quit claim deed has been recorded with the Bureau of Conveyances, it is returned by the Bureau with proof of recording. The owner must then provide the recorded deed to the resort management company in order to update the account records for reservations, accounting and billing. The resort management company may have its own forms to complete and may also charge a fee to update their records.

Service to prepare and record the deed is available at Deed and Record

Deed and Record is an online service to prepare quit claim deeds for real property transfers into or out of trusts, remove former spouses and gifting. Deed and Record does not offer legal advice or services.

Posted on Feb 19, 2014

Form P-64B, Exemption from Conveyance Tax Explained

Form P-64B, Exemption from Conveyance Tax Explained

The State of Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers in and out of a trust are exempt. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

 

Posted on Jan 14, 2014

Hawaii Timeshare Trends

Today’s Hawaiian timeshare is not the same as the shady timeshare of yesterday.  The industry is now dominated by big corporations like Hilton, Disney, Hyatt, Starwood, Marriott and Wyndham. These big corporations have standardized the timeshare industry.   

Another factor in growth is Hawaii’s Bureau of Conveyances which maintains accurate records of timeshare units. These records are readily accessible by the public. This accuracy and accessibility of ownership records protects the public and their timeshare investment.

 

As a result timeshares in Hawaii have grown 23% since the economy collapse in 2008.  In 2008 there were 8,314 timeshare units in Hawaii. Last year in 2011 there were 10,201. Deed and Record does it all to change ownership and title by quit claim deed for the growing number of timeshare owners.

Posted on Jan 18, 2013

Hawaii’s Bureau of Conveyances

Hawaii is the only state in the nation with a single statewide recording office. There are two systems of recording in the State of Hawaii, the “Land Court” and the “Regular System.” The Regular System basically serves to give “notice” that something is on record. The Regular System is similar to the recording by county found in the other states. The Land Court issues certificate of titles to owners of land. Ownership in Land Court is guaranteed by the State of Hawaii.

A conveyance tax is imposed on all transfers of ownership or interest in real property through deed unless the transfer is specifically exempted. Transfers into living trusts, transfers due to divorce and gifted timeshares are exempt.

As of July 1, 2011, the Land Court will not accept any document affecting timeshare ownership. All timeshares are to be recorded in the Regular System with the Bureau of Conveyances.

Posted on Nov 10, 2012

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