Support and confliction resolution services can help condominium associations and members solve disputes quickly and affordably to improve the relationship between management and members.
Condominium associations in Hawaii are designed to be self-managed, with minimal government involvement. The Real Estate Branch (REB) offers support to the Hawaii condominium community—this includes owners, board members, developers, and the general public—by providing information and referral services related to Hawaii’s condominium laws (Hawaii Revised Statute Chapter 514B) and other related topics. The REB’s educational efforts are funded by the Condominium Education Trust Fund (CETF), which aims to promote education and research in the condominium sector, improve the management of condominium associations, and support quick and affordable solutions for resolving association disputes, including mediation and arbitration. This focus on education aligns with the principle that condominium associations should largely enforce their rules themselves.
Can the Real Estate Commission Help Resolve Disputes Between Owners and the Association, Board, Managing Agent, or Other Owners?
In short, no. Hawaii’s condominium laws emphasize self-governance, where owners are responsible for enforcing the rules, and government involvement is limited. Disputes among owners, or between owners and the association or board, should generally be resolved through tools like mediation, arbitration, or litigation. The Regulated Industries Complaints Office (RICO) does have the power to investigate specific complaints, particularly those related to document requests, and can take legal action if needed. You can reach RICO at (808) 586-2653.
The law encourages using mediation and arbitration to settle disputes. Courts will consider whether owners have used these methods before awarding any legal costs or attorney’s fees, as outlined in HRS § 514B-157 and HRS § 514B-161. Disputes related to the interpretation or enforcement of the association’s rules can be submitted for mandatory mediation, and voluntary arbitration is also an option at the request of any party pursuant to HRS § 514B-162. The Commission currently subsidizes the cost of mandatory mediation, with plans to begin subsidizing voluntary arbitration.
Mediation is not required for disputes involving potential property damage, health or safety risks, assessments (Exceptions are found in Act 196 SLH 2018), personal injury claims, or insurance matters.
If an owner successfully takes legal action to enforce the association’s rules (HRS Chapter 514B), they are entitled to recover legal fees, provided they first requested the board to enforce the rules and allowed reasonable time for the board to act unless doing so would have been pointless (HRS § 514B-157). If an owner loses in court, they must cover the association’s legal costs. However, if the owner initially sought mediation or arbitration and made a genuine effort to resolve the issue before taking it to a higher court, they won’t be responsible for the association’s legal fees.
Learn more about available condo mediation and arbitration options.
