What is Fee Simple or Leasehold?

 
Fee Simple- Means, an estate in which you purchase both the
land and buildings on the property.

Leasehold- Means the building portion of an estate is purchased
and the land is owned by a lessor or leaseholder.

Why is some property leasehold? It began long ago when the Hawaiian Islands were under a monarchy. Large parcels of land were entrusted to individuals then placed into immortal trusts when they became deceased. Their hope was to preserve and protect the rights of the native Hawaiians.

What happens if you purchase a leasehold property? There are some conditions to be aware of. Here is a list of questions to ask on each leasehold property:

• Length of lease remaining (typically ranging from 55 - 75 years).

• Dollar amount of lease rent (usually fixed for a 25 - 35 year period).
Hawaii Revised Statues Section 519-2 sets maximums on lease rent.

• Can the lessee purchase the leased fee interest in the land from the lessor?

• Can you resell your leasehold property without penalties? In most
situations, yes. See Reassignment of Lease, Hawaii Revised Statutes Section 516-63.

• Read the fine print of your Lease, which your Real Estate Agent can help you with.

* For more information on Hawaii Real Estate contact
your Property Network, Ltd. Agent.
Mahalo

Property Network, Ltd. 75-5799 B-3 Alii Drive, Kailua-Kona, HI 96740
Real Estate Sales (808) 329-9300 " Rental Division (808) 329-7977
www.hawaii-kona.com " toll free 800-358-7977