What does leasehold in Hawaii mean?

What does Leasehold mean we often get asked. In Hawaii, the term “leasehold” refers to a type of property ownership in which an individual holds the right to use and occupy a piece of land or a building for a specific period of time. Under a leasehold arrangement, the owner of the property (the fee owner or lessor) grants the right to use the property to another individual or entity (the tenant, lessee, or leasehold owner) for a set period of time, typically in exchange for a periodic payment (such as monthly rent). At the end of the lease term, the tenant’s right to use the property expires, unless the lease is renewed or the tenant is able to purchase the property outright.

Leasehold ownership is common in Hawaii, particularly in the case of condominiums and other multi-family dwellings. In Hawaii, some condominiums and apartments are sold as leasehold properties, with the tenant (leasehold owner) holding the right to use and occupy the unit for a specified period of time (often 30 years or more). Leasehold ownership can offer certain advantages, such as lower upfront costs and the ability to try out a new location before committing to a longer-term purchase. However, it is important for potential leasehold buyers to carefully review the terms of their lease agreement and understand their rights and responsibilities under the leasehold arrangement.

 

 

Important: These posts are for informational purposes only, not professional legal advice. Always seek counsel for legal guidance.”