What must be provided to a buyer purchasing a leasehold property in Hawaii?

When purchasing a leasehold property in Hawaii, it is essential to provide both a leasehold disclosure form and a copy of the lease to ensure that the buyer is fully informed about the nature of the leasehold interest. The leasehold disclosure form helps to highlight the unique characteristics of leasehold properties, which differ significantly from fee simple ownership, as the buyer does not own the land but rather leases it for a specified period. This disclosure includes important details about the lease terms, potential costs, and other factors that could impact the buyer’s decision.

Providing the lease itself allows the buyer to review the specific terms and conditions of the lease agreement, including duration, rent payments, rights, and obligations of both the lessor and lessee. It is crucial for a buyer to understand the full context of what they are purchasing to avoid surprises or misunderstandings later.

This comprehensive approach safeguards the buyer’s interests and ensures they make an informed decision. Therefore, supplying both the leasehold disclosure form and the lease document aligns with the legal requirements in Hawaii and echoes the importance of transparency in real estate transactions.