Realtors have a pivotal role in helping preserve the residential character of Kailua’s neighborhoods. They have a professional obligation to follow City and County of Honolulu’s Land-Use Ordinances. They also have a legal and ethical obligation to always disclose pertinent information regarding a property and explain applicable zoning laws to home buyers.
Realtors, who operate, advertise or promote transient vacation use on residential zoned properties without nonconforming use certificates for said properties are subject to disciplinary action by the State of Hawaii Real Estate Commission.
Realtors should disclose to potential buyers that Kailua’s residential-zone properties can not be operated as visitor lodging businesses for less than 30 days stays unless the property has a NUC for such use.
It has come to Keep it Kailua’s attention that a growing number of Realtors are participating in deceptive business practices by telling their clients that there are loopholes (see Loophole myth) that allow property owners to provide less than 30 day stay visitor lodging or that the neighbors do not care and its unlikely you will get in trouble for operating vacation rentals and B&B lodges.
Many Kailua residents do care and many property owners in Kailua have been cited for operating illegal visitor accommodations.
For many years, Keep it Kailua has written letters to Realtors to inform them of the concerns of neighbors and the Kailua community to help preserve Kailua neighborhood’s residential character and to remind them of their statutory duties (HRS,467-14(18) and HAR, Chap 99-3) (see letter to Realtors).
Regulated Industries Complaint Office (RICO):
Residents and home buyers can file a complaint regarding a Realtor with State of Hawaii’s Department of Commerce and Consumers Affairs RICO office at (808) 587-3222 or mail complaints to 235 S. Beretania St., 9th Floor, Honolulu, Hawaii 96813.
RICO has issued numerous adminsitrative actions against Realtors offering, advertising and promoting illegal vacation rentals and B&B lodges (see RICO Administrative Actions).