Fee Simple Hawaii

If you are interested in buying property in Hawaii, you need to understand a few important aspects of the real estate market there. If you browse through some properties online or just look up any real-estate ad you may encounter two terms that are not as widely used in other states: “fee simple” and “leasehold.”

Fee Simple – Hawaii

Owing a fee simple property, or also known as a freehold property or fee simple absolute refers to having full ownership of the property which includes both the land as well as any buildings constructed on that land. This type of property ownership is the most common in across most states in the U.S. The owner of a fee simple property can use, sell or pass the land to heirs without any restrictions. The owner is responsible for paying the local property taxes and any maintenance expenses.

Property for Sale in Hawaii

If you are interested in buying property in Hawaii – whether you are investing in residential properties or would simply like to purchase a vacation home, it is best if you first consult with a real-estate agent that will be able to better guide you. If you browse through various real-estate listing you will notice that sometimes there are significant price differences between properties – generally the fee simple properties (marked with the letters FS next to the title) will be the more expensive ones.

Why buy a fee simple property?

A fee simple property comes with a higher upfront cost but with much higher flexibility – you may use the property as you wish. The only instance in which the property can be taken away is if you can no longer afford to pay the mortgage for it. Buying a fee simple property in Hawaii would best serve future owners or investors who want to make a long-term investment over which they can have full control.