Buying a home in Hawaii can be a very different experience for those used to real estate ownership on the mainland. There are unique factors you must take into account as you shop for a house or condo in Hawaii. The biggest one of all is understanding the difference between Fee Simple & Leasehold properties.
Fee Simple Properties in Hawaii - What You Own
Let's start with the one you are familiar with most, Fee Simple ownership. This is the most common form of land or property ownership in the U.S. In Hawaii, fee simple works the same way anywhere else. That simply means that you own the land itself, fully and in perpetuity until you dispose of it. That property is yours unless you sell it, give it away or trade it. You can lease it out or live on it as you wish. Easy to understand and straight forward.
Hawaii adds another category, though, found in few other places that makes it unique.
What Leasehold Properties are in Hawaii
In Hawaii, there's another designation that a lot of our real estate comes under, called Leasehold. With these you can own a house or condo, but not the land beneath it. This can cause confusion because it's something completely new for some.
Fee Simple Properties in Hawaii - What You Own
Let's start with the one you are familiar with most, Fee Simple ownership. This is the most common form of land or property ownership in the U.S. In Hawaii, fee simple works the same way anywhere else. That simply means that you own the land itself, fully and in perpetuity until you dispose of it. That property is yours unless you sell it, give it away or trade it. You can lease it out or live on it as you wish. Easy to understand and straight forward.
Hawaii adds another category, though, found in few other places that makes it unique.
What Leasehold Properties are in Hawaii
In Hawaii, there's another designation that a lot of our real estate comes under, called Leasehold. With these you can own a house or condo, but not the land beneath it. This can cause confusion because it's something completely new for some.