Key Takeaways
- Hawaii recognizes fee simple and leasehold ownership, with leasehold being more common than in other states
- Leasehold ownership means owning improvements but leasing the land from the fee owner
- Hawaii has unique land division history including ahupua'a and traditional land rights
- Tenancy by the entireties is available for married couples with right of survivorship
- Homestead exemption provides protection from creditors for owner-occupied property
Last updated: January 2026
Hawaii Property Ownership
Hawaii has unique property ownership concepts that differ from most mainland states, particularly regarding leasehold ownership.
Fee Simple vs. Leasehold
Fee Simple Ownership
| Feature | Description |
|---|---|
| Definition | Complete ownership of land and improvements |
| Duration | Perpetual, no time limit |
| Rights | Full bundle of rights |
| Value | Generally higher than leasehold |
Leasehold Ownership
| Feature | Description |
|---|---|
| Definition | Lease the land, own the improvements |
| Duration | Length of lease term |
| Lease rent | Periodic payments to fee owner |
| Reversion | Property returns to fee owner at lease end |
Important: Leasehold ownership is much more common in Hawaii than most states due to historical land ownership patterns.
Leasehold Considerations
| Issue | Consideration |
|---|---|
| Remaining term | How many years left on lease |
| Lease rent | Current rent and adjustment provisions |
| Renegotiation | When lease rent resets |
| Financing | Lenders may have restrictions |
| Value | Decreases as lease term shortens |
Historical Land Division
Traditional Hawaiian Land System
| Term | Description |
|---|---|
| Ahupua'a | Wedge-shaped land division from mountain to sea |
| Konohiki | Manager of an ahupua'a |
| Kuleana | Small land parcels awarded to commoners |
| Great Mahele | 1848 land division that created private ownership |
Kuleana Rights
| Right | Description |
|---|---|
| Access | Right to cross other properties |
| Water | Traditional water rights |
| Gathering | Traditional gathering rights |
| Continuation | Rights may still exist today |
Forms of Co-Ownership
Tenancy in Common
| Feature | Description |
|---|---|
| Ownership | Separate, undivided interests |
| Shares | May be unequal |
| Survivorship | No automatic right |
| Transfer | Each owner can sell or will their share |
Joint Tenancy
| Feature | Description |
|---|---|
| Ownership | Equal, undivided interests |
| Four unities | Time, title, interest, possession |
| Survivorship | Automatic to surviving owner(s) |
| Creation | Must be express in deed |
Tenancy by the Entireties
| Feature | Description |
|---|---|
| Who can hold | Married couples only |
| Survivorship | Automatic to surviving spouse |
| Creditor protection | Individual creditors cannot attach |
| Divorce | Converts to tenancy in common |
Homestead Protection
Hawaii Homestead Exemption
| Feature | Description |
|---|---|
| Purpose | Protect home from creditors |
| Amount | Up to $30,000 for head of household |
| Property | Principal residence only |
| Exceptions | Does not protect from mortgage, taxes |
Exempt from Forced Sale
The homestead is protected from:
| Protected | Not Protected |
|---|---|
| General creditors | Purchase money mortgage |
| Judgments | Property taxes |
| Unsecured debts | Mechanic's liens |
Water Rights
Appurtenant Water Rights
| Right | Description |
|---|---|
| Traditional rights | May attach to land |
| Kuleana rights | For taro cultivation |
| Surface water | May require permits |
| Ground water | State Water Commission regulates |
Beach Access
| Feature | Description |
|---|---|
| Public beaches | All beaches are public in Hawaii |
| Access | Public must have access to beaches |
| High water mark | Private property begins here |
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Test Your Knowledge
What is leasehold ownership in Hawaii?
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D
Test Your Knowledge
Which form of co-ownership in Hawaii is available only to married couples and provides creditor protection?
A
B
C
D