Fee Simple vs Leasehold

Think of Fee Simple ownership as the gold standard of property ownership.

✓ You own the land.

✓ You own the structure(s) on it.

✓ You can sell it, lease it, gift it, or pass it on to your family.

It’s the most common and preferred form of ownership, especially for homeowners looking for long-term stability and full control. *Local Tip: Most residential homes and many condos on Oahu are Fee Simple.

Now, Leasehold is a bit different. It’s more like renting the land, even if you buy the building on top of it. You don’t own the land — you lease it from a landowner. The lease has an expiration date (usually 30–99 years). The value of Leasehold properties often decreases as the lease gets closer to expiration. Once that lease is up, unless renegotiated, the land and the property sitting on it could revert to the landowner. 

Hawaii has a unique land history. Much of it was owned by trusts, large estates, or aliʻi (royalty). To keep ownership within the family, land was leased, not sold outright.

Not necessarily! For some buyers, Leasehold can mean owning in a desirable area for a lower price. But it’s crucial to understand the lease terms and potential risks.

Sometimes. If the landowner is willing to sell the land (called a "fee conversion"), you may have the option to purchase it, but it’s not guaranteed.

Your real estate agent can help you identify. It will also be clearly listed in MLS and title documents.