How do I shop for a mortgage?

Caron B Realty has resources, based on years of working with reputable lenders in Hawaii, to refer to our clients, if requested. While we certainly encourage and honor existing client relationships with a lender, we always encourage our Buyers to contact at least two independent lenders to compare loan options best suited to Buyer needs, rate and terms.

What is the scope of the Home Inspection?

In Hawaii, home inspectors are not licensed. Many of those we trust have chosen to acquire credits toward nationsl accredidation, and several have a construction/general contractor background with years of experience. Caron B Realty recommends, without exception, our Buyers hire and independent inspector, and we provide the names of some individuals our Buyers may contact to interview in order to make a selection.

Since Hawaii is not an "attorney state" do I need to hire an independent attorney to protect my legal interests in buying a home in Hawaii?

The Purchase Contract and addenda, which are Standard Forms developed by the Honolulu Board of Realtors, is a legal document. Caron B Realty and all its agents are members of the Board as well as the National and Hawaii Association of Realtors, and we comply with all standards. There may be issues that surface during a purchase transaction where it would be advisable for the buyer to seek the services of outside counsel, and Caron B Realty and its agents support and encourage such counsel whenever it is prudent.

How do I know if an attorney is necessary for me when purchasing a home?

Caron B Realty agents are trained to recognize issues that may not require additional review. Your agent may call such issues to the attention of our Broker in Charge and Principle Broker at any time without charge to the client. In consultation, those issues will be reviewed and it will determine whether outside counsel is advised.

What Is Fee Simple Ownership?

Fee simple, also known as fee simple absolute or allodial ownership, is probably the most familiar form of property ownership to buyers of residential property, especially on the US Mainland and common law countries.  A fee simple buyer acquires ownership of the entire property, including both the land and buildings.  The fee simple owner does not pay ground rent, but does pay maintenance fees and real property taxes.  The fee simple owner has the right to possess, use the land and dispose of the land as he wishes - sell it, give it away, trade it for other things, lease it to others, or pass it to others upon death.

The fee simple estate is also called fee simple absolute (because it is the most complete form of ownership), "estate in fee simple" or "fee-simple title."

What Is Leasehold Ownership?

A leasehold interest is created when a fee simple landowner enters into an agreement or contract called a ground lease with a lessee.  A lessee buys leasehold rights much as one buys fee simple rights; however, the leasehold interest differs from the fee simple interest in several important respects.  First, the buyer of residential leasehold property does not own the land and must pay ground rent.  Second, his use of the land is limited to the remaining years covered by the lease.  Thereafter, the land returns to the lessor, and is called reversion.  Depending on the provisions of any surrender clause in the lease, the buildings and other improvements on the land may also revert to the lessor.  Finally, the use, maintenance, and alteration of the leased premises are subject to any restrictions contained in the lease.

Conversion of leasehold property to fee simple ownership involves purchasing the landowner's remaining interest, called the leased fee interest.  The lessors of many, if not most, leasehold properties are currently offering to sell their leased fee interests to their lessees or prospective buyers of a leasehold property.  There is a State of Hawaii law and a City & Country of Honolulu (Oahu) ordinance affecting the mandatory conversion of residential leasehold properties.

It is extremely important to understand fee simple vs leasehold because it: affects your decision to buy, affects your ability to obtain a loan, and it affects your ability to sell.