Fee Simple vs. Leasehold

There are two types of land ownership in Hawai’i, and these apply to both single-family homes and condominiums: fee simple and leasehold. Make certain you know which you’re buying before you sign on the dotted line.

Fee simple is the most complete form of ownership, because the buyer owns the entire property — land, building and all.

Leasehold property belongs to a fee simple landowner who enters a ground lease with a lessee. If you are the buyer of residential leasehold property, you cannot own the land, and your use of the land is limited to the remaining years covered by the lease. Leasehold properties are generally much less expensive than fee simple, because the cost of the land is not a factor.