Brief History
Hawaii is the only state in the Union that keeps one central location
for all real estate deeds. All other states delegate this responsibility
to the county level. Hawaii's unique form of recording can be traced back
to the original land tenure system of the Hawaiian Kingdom. All land was
owned by the King, but made available to everyone else. The concept of
private property did not exist.
That changed with the Great Mahele. Westerners pressured the Hawaiian
government to adopt a private system of land ownership. Bowing to that
pressure, between 1845 and 1848 King Kamehameha III divided up land among
the Kingdom, high-ranking chiefs, and the territorial government. This
was called the Ka Mahele now known as the Great Mahele. Ka Mahele
translated is "the division."
There are compelling arguments the native Hawaiians did not receive
their fair share of the Great Mahele. Periodically, groups or individuals
advocating native Hawaiian rights challenge the established land
ownership system. These challenges create rumors and innuendo resulting
in confusion and uncertainty.
Because of confusion determining land ownership and similar names the
Land Court was established in 1903.Original registration in Land Court is
done through a lengthy process of a judicial review. The availability of
title insurance has dramatically reduced the need for judicial
determination and registration in the Land Court.
Hawaii's Recording System
Hawaii has three methods to change title on real estate. The Regular
System gives "notice" of change in title. Deeds recorded in the Land
Court system are guaranteed by the State of Hawaii. Documents recorded in
both systems are referred to as a Double System Recording.Â
Types of ownership
Hawaiian Real Estate is owned is fee simple, as a leasehold interest
or as a timeshare.
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Timeshares
Timeshares are fractional vacation ownership interests in a resort.
The fractional interest is usually the right to occupy a one or two
bedroom unit for one week, every year. One unit could have 52 owners.
Purchasers are granted ownership as either as a "Time-share Estate" or as
a "Time-share Use." Time-share Estate ownerships are granted by deed and
are actual real estate ownerships. Â Time-share Use ownerships are
granted by contract and the owner has a license or membership interest in
the time share resort. Time-share Use is not an ownership in real
estate.
Leaseholds
Leasehold interest is the right to use the land for a specific number
of years, typically 55 to 75. The person who owns the leasehold must turn
the land back to the actual land owner at the end of the lease. The
leaseholder owns the improvements on the land, but not the land
itself.
Ownership in a cooperative or multi-family unit is often acquired by
lease hold interest. Leasehold interests are conveyed by an apartment
lease. The apartment lease has many names: Apartment Lease, Apartment
Lease and Ground Lease, Condominium Conveyance Document, Apartment Deed
and Ground Lease, or Dwelling Lease.
Fee Simple
Real property held in fee simple is the most common form of ownership
and what a person typically thinks what it means to own real estate. The
person owns all the land, and all of the building. In the past,
transfers in ownership had words "fee simple". Fee simple meant the new
owner's use of the land and buildings had no restrictions what so ever.
Today transfers are granted subject to restrictions of an integrated
society such as zoning restrictions and access by utilities, by local
governments, and holders of mineral rights below the surface.
Typical ownerships in fee simple are single family homes and
condominiums. Single family homes are what you expect, land and home
owned together by one owner. Condominiums are multiple homes owned by
multiple owners with a "common area" owned and shared by all. Common
areas are; walk ways, parking lots, pools, BBQ areas, laundry facilities
and recreational areas.
Today, grants in fee simple are conveyed with either a warranty deed
or a quitclaim deed. A person transferring ownership with a warranty
deed at a minimum guarantees he or she is the actual owner and he or she
is conveying clean title. Warranty deeds are accompanied with title
insurance. Warranty deeds are used in bona fide sales.
Quitclaim deeds are transfer of ownership with no guarantees. The
grantor basically conveys whatever ownership he or she may have. Quit
claims are essentially the owner walking away from the property. The new
owner takes the property "as is." Â Transfers from one spouse to another
are often quitclaimed.
Time shares are often conveyed with a quitclaim deed. There is limited
marketability for time shares so no real opportunity to sell. To avoid
paying annual maintenance fees an owner gives away the property. Â
Ohana Dwelling
A final type of property is the Ohana Dwelling or Grandma's Cottage.
This is separate building on the property of the main home. It is usually
much smaller and self contained. It can be rented out or occupied by a
relative, such as grandma.
Need Help?
Need to transfer real estate into a trust, remove a joint tenant or
quitclaim a property? Save time, save money visit www.DeedAndRecord.com, or
contact Mark at 949-474-0961, or at Mark@DeedAndRecord.com. Office
address is 2021 Business Center Drive, Suite 207, Irvine, California
92612