In which situation is a Plain Language Addendum required?

A Plain Language Addendum is required in situations where the purchase agreement involves properties that are typically priced below a certain threshold, which is relevant in Hawaii real estate transactions. In general, properties that are priced at or below $30,000 are required to have a Plain Language Addendum to ensure clarity and understanding for the parties involved, especially for those who may not be familiar with real estate terminology.

In the case mentioned, the undeveloped lot selling for $21,000 falls under this threshold, making the inclusion of a Plain Language Addendum necessary to aid in the clear communication of terms and protect the interests of the buyer and seller. This practice aligns with consumer protection standards, ensuring that all parties fully comprehend their rights and obligations without the confusion that can arise from legal jargon.

The other cases involve properties that exceed this price point, meaning they do not require the Plain Language Addendum as per Hawaii's regulations. Additionally, other factors such as property type and transaction complexity could influence whether a Plain Language Addendum is required, but the primary factor in this scenario is the sale price of the undeveloped lot.