Relating To Real Estate Transactions.
The enactment of HB 840 would strengthen existing laws by amending Section 508D-15, Hawaii Revised Statutes. The new requirements would ensure that buyers are better informed about the potential hazards of purchasing properties that may be affected by coastal erosion and flooding, which are becoming more common due to climate change. This legislative measure seeks to create a more transparent property market, potentially influencing buying decisions and real estate values in vulnerable areas.
House Bill 840 addresses the increasing concerns surrounding real estate transactions in the context of climate change, specifically sea level rise. Recognizing the imminent danger posed by climate issues, particularly to properties located near shorelines, the bill mandates enhanced seller disclosures for residential properties. This includes information about erosion control structures, coastal erosion rates, and the actual distance of properties from the shoreline, thereby aiming to provide potential purchasers with a clearer understanding of the risks associated with their investments.
One of the notable points of contention surrounding HB 840 is whether the mandated disclosures might deter buyers from investing in properties in high-risk areas. Critics may argue that increased transparency could lead to decreased property values and a reluctance amongst buyers. However, proponents view the bill as essential for consumer protection, emphasizing that informed buyers are essential for long-term sustainability in real estate markets, particularly in light of the growing impacts of climate change.