HAR §15-308-104. Payment due on sale or transfer

(a) The purchaser agrees that upon any sale or transfer, the corporation shall immediately be notified by the owner of the terms and conditions of the sale or transfer. Except for a permitted transfer approved by the corporation, the corporation shall be entitled to be paid its share of the net appreciation on the effective date of the transfer of an amount equal to: 308-41 procured by the corporation shall be used to establish the corporation ' s percentage share at the time of transfer or sale by the following calculation : Original Fair Market Value minus Purchaser ' s Original Base Purchase Price divided by Original Fair Market Value rounded to the nearest one per cent . Net appreciation is calculated as follows : ( Current Fair Market Value of the dwelling unit as originally purchased excluding any capital improvements by the purchaser subsequent to original purchase ) - Purchaser ' s Original Base Purchase Price - Actual Sales costs incurred, i f any . Any shared appreciation equity agreements entered into on or after August 2 7 , 1 9 9 9 shall not be eligible to deduct sales costs . (b) The shared appreciation equity program restriction shall be part of the conveyance document for the sale of the dwelling unit recorded in the bureau of conveyances . Notification of the shared appreciation program restriction as an encumbrance on the property shall be recorded as a separate memorandum . ( c ) I f the corporation ' s percentage share of net appreciation is less than one-half of one per cent , the shared appreciation equity program restriction shall not apply . [Eff 1 / 15/22 ; comp DEC 1 ) 2022 (Auth : HRS §201H-4 ) ( Imp : HRS §201H-47 )