Which of the following best describes a leasehold property interest in Hawaii?
Correct Answer
B) The buyer owns the right to use the land for a fixed term and pays ground rent to the fee owner
In Hawaii, a leasehold property interest means the buyer (lessee) acquires the right to use and occupy the land for a fixed term specified in the lease, while the underlying land is owned by a separate fee simple landowner (lessor). The lessee pays ground rent to the lessor throughout the lease term. Hawaii has one of the highest concentrations of leasehold residential property in the United States due to historical large estate land ownership patterns.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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