Here are some terms that you may need to know while considering buying a property.
Leasehold (LH) A way of holding title to property. The lessor holds the Fee Simple (FS) interest and the lessee hold the leasehold interest. The leasehold interest is determined by the lease itself. It is important to know the following facts about a lease before you consider purchasing:
- Term or time left on the lease. The longer the term, the more desireable.
- Lease Rent: What you pay to the lessor monthly, semi-annually or annually.
- Lease Period: A fixed period of determined lease rent.
- Surrender Clause. Some leases are not renewable and have a surrender clause.
Fee Simple (FS) This is the way most of America owns property. You have a deed proving that you are a vested land owner. Here in Hawaii, most of the land is owned by huge estates which are remnants of the old Hawaiian monarchy. The Kingdom of Hawaii owned all of the land. Bernice Pauahi Bishop Estate, is the largest of these land owners. They own 341,546 acres or approximately 23% of all of the land. More information to come soon.