Hawaii Revised Statutes 516-73 – Suggested form of standardized summary of lease provisions
Terms Used In Hawaii Revised Statutes 516-73
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
- Lease: means a conveyance of land or an interest in land, by a fee simple owner as lessor, or by a lessee or sublessee as sublessor, to any person, in consideration of a return of rent or other recompense, for a term, measured from the initial date of the conveyance, twenty years or more (including any periods for which the lease may be extended or renewed at the option of the lessee). See Hawaii Revised Statutes 516-1
- 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 any person to whom land is leased or subleased, and the lessee's heirs, successors, legal representatives, and assigns. See Hawaii Revised Statutes 516-1
- Lessor: means any person who leases or subleases land to another, and the lessor's heirs, successors, legal representatives, and assigns. See Hawaii Revised Statutes 516-1
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
A standardized summary of lease provisions executed pursuant to section lease; disclosure” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>516-71 of this chapter may, but need not, be substantially in the following form:
STANDARDIZED SUMMARY OF LEASE PROVISIONS
This receipt dated _______________, between ________________
________________________________________ (the “buyer”), and
________________________________________ (the “seller”),
tax map key no. ( ) / / /(the “property”).
Lessor: _______________________________________________________
Sublessor: ____________________________________________________
Lease Expiration: ____________ Surrender Clause: (yes or none)
Lease Rent: $__________ per __________ until __________
$__________ per __________ until __________
$__________ per __________ until __________
Renegotiation Dates: __________________________________________
Renegotiation Terms: __________________________________________
________________________________________________________________
I understand the information above is a summary of the terms of the lease and that for more detailed information I should read the lease.
I understand that the subject property is leasehold property and I will acquire the right to occupy and use the leased real property for the time stated in the lease agreement. I will not acquire outright or absolute ownership of the land or fee simple ownership. The land is owned by lessor or the leased fee owner, to whom I, the lessee, will agree to make lease rent payments and comply with the terms of the lease or be subject to the lessor’s enforcement actions. The lease rent payments are usually fixed for specific amounts at fixed periods of time, then subject to renegotiation. Renegotiation may be based on formula or arbitration set in the lease agreement or by law or by agreement between the lessor and lessee. THE RENEGOTIATED LEASE RENTS MAY INCREASE SIGNIFICANTLY. AT THE END OF THE LEASE, I MAY HAVE TO SURRENDER THE PROPERTY (SURRENDER CLAUSE) AND THE LAND BACK TO THE LESSOR WITHOUT ANY COMPENSATION.
I understand when leasehold property is acquired, title is normally conveyed by means of an assignment of lease, whose purpose is similar to that of a deed. The legal and practical effect is different because the assignment conveys only the rights and obligations created by the lease to the property, not the property itself.
I UNDERSTAND THAT IF I HAVE ANY LEGAL QUESTIONS ABOUT LEASEHOLD PROPERTY, ABOUT THE LEASE DOCUMENTS, ABOUT THE TERMS OF THE LEASE, AND ITS CONSEQUENCES, I SHOULD SEEK THE ADVICE OF AN ATTORNEY.
[ ] I HAVE READ AND UNDERSTAND THE PROVISIONS OF THE LEASE DOCUMENTS RECEIVED, AND ACCEPT THE TERMS OF THE LEASE.
[ ] I DO NOT ACCEPT THE TERMS OF THE LEASE AND CANCEL THE ACCEPTANCE CONTRACT (DROA).
______________________________ _______________________________
Buyer’s signature Buyer’s signature
Date: ________________, ____AM/PM