Waiver of Subrogation Explained

Often, you will hear the term subrogation when dealing with association vendors and their workers’ compensation policies. If a painting contractor trips while working on your property, who will pay for his injury? Would your general liability policy cover him since he was hurt on your property, the painting company’s workers’ compensation policy because the painter was injured while working, or both policies? When there is an accident on property, a third party, such as an insurance company, cou [...]

HARPTA Increases to 7.25%

  The State of Hawaii Department of Taxation has announced that the rate will increase from 5% to 7.25% of the sales price for the withholding of tax on the sale of Hawaii properties by non-Hawaii resident persons/entities on or after September 15, 2018.  This withholding is commonly known as “HARPTA”. According to Tom Yamachika, President of the Tax Foundation, HARPTA is not a tax, but rather “a means for the state to collect capital gains taxes from absentee owners.” The increase was an [...]

Is Your Condo Property Registered with DCCA?

We wanted to pass along this often overlooked regulation (especially among smaller complexes) from the Hawaii Department of Commerce and Consumer Affairs Real Estate Division: Condominium owners and board members should be aware that each project or association having more than five units is required to register with the Real Estate Commission by completing the Commission’s registration application and paying mandatory fees, pursuant to §514B-103(a)(b), HRS. The Commission may also require add [...]

Considering an HOA Board Position?

There is a greater sense of involvement when you serve on your homeowners association (HOA) or condo board of directors. Just make sure you are ready for the responsibility.   Here are a few tips in becoming a good HOA board member.   1. Be prepared for meetings Not only should you read and digest information sent out prior to each meeting, you should also be well versed on the governing documents of the organization.Trying to read materials on the fly during a meeting slows down progress. You [...]

Condo and Homeowner Associations Must File GET Returns or Pay the Price

There are different types of nonprofits, including homeowner and condominium associations. However, not all nonprofits are the same when it comes to tax deductions and tax liability. You may have heard the term “501(c)(3) organization” associated with your favorite nonprofit charity. The reference, 501(c)(3), comes from the section of the federal Internal Revenue Code describing such entities. Contributions to 501(c)(3)s are usually deductible on a donor’s income tax return. There are a host o [...]

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