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| DISCLAIMER One of our goals is to provide visitors of HIRO Network with basic and general background information about Hawaii real estate. Because laws, customs and the practice of real estate may differ from state to state, and from the USA to foreign nations, you are advised to seek professional assistance pertaining to your specific needs in buying or selling real estate in Hawaii. BACKGROUND The land in Hawaiian is aina, but it means much more than real estate. To us aina means the land as a nurturer, a partner in the cycles of life, and a dwelling place that must be revered. HISTORICAL DEVELOPMENT Before the coming of the foreigners, landholding in Hawaii was managed under a feudal system. The kings were the sovereign owners. The original unit of land was called the ahupaa. The ahupaa usually extended from the shore to the mountain top, with rights in the adjoining sea waters, providing occupants with the means of supplying all their needs. In 1845, a Land Commission was appointed by King Kamehameha III. The Great Mahele or division of lands in 1848 was the most important land reform. This provided the basis for modern land titles in the islands. Today, accurately defined boundaries and official maps of all lands in the state of Hawaii are made a part of the public records. It is kept at the Bureau of Conveyances in Honolulu. FEE SIMPLE & LEASEHOLD As you begin your investigation into real estate in Hawaii, you will come across terms such as Fee (F), Fee Simple (FS), and Leasehold (LH). Fee (F) and Fee Simple (FS) means that you are buying the land, the building and/or the improvements on the land. However, a substantial part of Hawaii's property is sold on a Leasehold (LH) basis. Under the leasehold agreement, the buyer usually owns the building or improvements on the land but does not own the land. The buyer purchases a ground lease on the property (often on a long-term basis, 25 to 50 years) and pays a rental fee on the land to the owner. The buyer may obtain mortgage financing, may sell or give his interest in the property at anytime. The advantage of leasehold ownership is that it reduces the buyer's initial investment in acquiring a property since he is not paying the full fee simple value for the land involved. The disadvantage is you don't own the land. TODAY'S REAL ESTATE MARKET Hawaii's real estate market has been weak for several years. Though no one can predict when the market will turn around, generally speaking, it is a good time to buy real estate in Hawaii. ADDITIONAL INFORMATION If you have a specific question about Hawaii real estate, please send a message and we will try to obtain an answer. |
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