Hawaii Revised Statutes 171-79 – Purchase of fee title by lessee
Terms Used In Hawaii Revised Statutes 171-79
- Appraisers: means one or more, but not more than three, real estate appraisers appointed by the board. See Hawaii Revised Statutes 171-71
- Board: means the board of land and natural resources. See Hawaii Revised Statutes 171-1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Land: includes all interests therein and natural resources including water, minerals, and all such things connected with land, unless otherwise expressly provided. See Hawaii Revised Statutes 171-1
- lease: means a residential lease made by the board of land and natural resources under this part. See Hawaii Revised Statutes 171-71
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lessee: means the lessee under a residential lease and the successors in interest of the lessee. See Hawaii Revised Statutes 171-71
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Person: means one or more individuals and does not include any partnership, firm, or corporation. See Hawaii Revised Statutes 171-71
At any time after the requirement of construction of a residence upon the premises has been fulfilled and after ten years from the date of the issuance of the lessee‘s residential lease, any residential lessee who is financially able to purchase the fee title to the premises demised to the lessee by the lessee’s residential lease may, if not in default under the terms of the lessee’s lease, purchase the fee title at its fair market value determined as of the date of the exercise of the lessee’s option to purchase. The fair market value shall be determined by appraisers and shall exclude the value of improvements erected by the lessee and shall be determined as if the premises were not subject to the residential lease or to any mortgage made by the lessee. The patent or deed issued upon purchase shall state that within the ten-year period following the date of issuance of the patent or deed, the land or any interest therein shall not, without the written consent of the board of land and natural resources, be sold, leased, or otherwise transferred to any person disqualified under §§ 171-74 and 171-75, except that the lessee may mortgage the premises and improvements, without the board’s consent, to recognized lending institutions, which mortgage may be freely assigned by the mortgagee and the fee title sold to any person or corporation or agency of government at or after foreclosure.