Question for Realtors or Mortgage folks (real estate, foreclosure, rental)

[NandVsMom]

Can someone translate this into English? ; )

Must have 50% Hawaiian and qualify with DHHL to purchase this property.

[hotzcatz]

Hawaiian bloodline, if either one of your parents are not 100% Hawaiian or enough between the pair of them to get you up to 50% Hawaiian blood, you can't buy the property. DHHL is Department of Hawaiian Home Lands

[NandVsMom]

Aaaaaaah. I thought it might be something like that. The price for the home was TGTBT (Too Goood To Be True)! Thanks Hotz.

[hotzcatz]

Another thing which can cause TGTBT prices is "leasehold" properties. Sometimes you can buy a house or property and not even own it. If it is lease hold, you will have to pay a monthly lease to use the property - sort of like a rental fee. "Fee Simple" is when you but it outright it so you may want to check for "leasehold" and "fee simple" depending on your preferences.

Sometimes even the owner isn't the owner. If a place is in pre-foreclosure or even in foreclosure, then the owner of record may not be the actual owner anymore and may not have the right to sell it. The records aren't always updated quickly, so that can add interest to purchasing properties, too. There was an auction last year which was canceled because the fellow who did the foreclosing was foreclosed on himself.

[nwcountrygal]

Anyone have any idea when I Lease hold property what happens when it is over. Found one near Kapaho that is agriculture property. 30 years left on the lease and you have to get a agriculture permint. Being the leases only started in the 50's is there anything to say what happens when the lease is over? An interesting subject - I only have limited knowledge from the book broken trust..of how the leases started. Is there any action set for when these leases come up?

[nwcountrygal]

Also being in lava zone 1 would that change insurance being your a lease hold property? This isn't Home lands property and yes I will shy against it but courise? How does that work? Being very little property on BI is lease hold that anyone with proper process can buy?

[cynmkolohe]

Leasehold transactions are complicated and anyone considering it should seek really good representation (a good Realtor and attorney).

I'm going to quote from the text of the Principles and Practices of Hawaiian Real Estate book I keep handy (even though it's falling apart):

The term of these leases may be of any length, but normally they are for 55 years. They usually have a specific period of time in the lease (called the fixed period of the lease) such as 25 years, wherein the lease rent remains the same, or has fixed increases at stated intervals. The rent for the balance of the term is then renegotiated on or before the expiration of that term. Such negotiations...are normally based on current market value of the land....

Understanding terms like "assignment of lease," "reversionary interest" and "fee conversion" is important before considering entering into a transaction for leasehold property.

[nwcountrygal]

Thank you confused this lease held land with Agri permit 30 years left for an amount..... so monthly fee would be ? again just interested in educating myself don't put yourself out to try to explain but interested. Just want to understand process. So by your book leases have renewed or returned to the trust? or moved to another?

[nwcountrygal]

all leases are through the lands trust or I'm I wrong?

[cynmkolohe]

This article has some information that may help clarify a few details -- it's from 2007 and mostly concerns Oahu, but there is a list at the bottom of many of the major lessors: Leasehold Owners Face Tough Decision