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favorable to the owner, the director shall approve the petition and declare the property to <br /> be dedicated to nonspeculative residential use. In order to place prospective buyers on <br /> notice of the dedicated status and the retroactive tax liability, the petitioner shall within <br /> sixty days of the notice of approval of the petition record the notice of dedication in <br /> accordance with the procedures established by the bureau of conveyances. The petitioner <br /> shall furnish the director with a copy of the recorded notice. Nonrecordation of the <br /> notice, within the prescribed period, shall be grounds for disallowance of the dedication. <br /> (d) Each petition for dedication shall be for [ten-year] five-vear periods. At least one <br /> hundred eighty days prior to the cancellation, the department of finance shall notify the <br /> owners by mail of such cancellation. The owner shall reapply for renewal of the <br /> dedication by filing an application with the director on or before September 1 of the <br /> [tenth] fifth yeaz. The renewal petition shall, in all respects, be processed similarly to an <br /> original petition. Upon approval by the director of succeeding dedications, the assessed <br /> valuation shall continue to be assessed in accordance with the provisions of the <br /> nonspeculative residential use dedication. <br /> (e) In the case of a renewal which immediately follows an expiring term, the assessment base <br /> for the new five-vear dedication term shall be the dedicated value on the expiration date <br /> plus fifty percent of the amount of increase between the dedicated value and the market <br /> valuation as of January 1, [following] preceding the termination of the dedication term. <br /> <br /> (f) If, during any period of dedication, any breach of the dedication requirements should <br /> occur, the special nonspeculative residential use assessment privilege shall be canceled <br /> and retroactive taxes shall be imposed. Breach of the dedication shall include the failure <br /> to maintain the home exemption status of the property, violating the exclusive residential <br /> use provision, dedicating the property to agricultural use or receiving the benefit of the <br /> agricultural use assessment, subdivision of the property into separate pazcels, or the <br /> declaration of a condominium property regime, or the sale of the dedicated property or <br /> any portion thereof sold by way of a conveyance which is subject to conveyance tax <br /> under the terms of chapter 247, Hawaii Revised Statutes. Retroactive taxes due and <br /> owing as a result of the breach shall be a paramount lien on the property. <br /> (1) Provided, that the nonspeculative residential use dedication shall not be breached <br /> if the dedicated property meets the criteria as listed below: <br /> The following also includes provisions that are not subject to the <br /> conveyance tax under the terms of chapter 247, Hawaii Revised Statutes, and are <br /> included for further clarification. <br /> (A) Transferred to the owner's heirs by testacy or intestacy, <br /> (B) Jointly owned by spouses and upon the death of one spouse ownership is <br /> transferred to the surviving spouse, <br /> (C) Transferred to a spouse or former spouse in connection with a property <br /> settlement agreement or decree of dissolution of a marriage or legal <br /> separation, <br /> <br />