Most of the properties in Kona real estate industry are leasehold properties. There are only a small number of private ownership properties in Kona. Before buying a leasehold property in Kona, you need to obtain detailed information about the lease. Buyers should obtain the lease document from the seller. There are a few types of lease documents such as master lease, apartment lease, and condominium public report. The condominium public report must be obtained if you are buying a new condominium.
Besides, you need to review relevant lease documents. For instance, if you are buying a co-op apartment in Kona, you need to review two types of lease documents including master lease and proprietary lease. After you have received the lease documents, you need to sign the sales contract. The sales contract will contain information such as a summary of the lease provision, surrender clause provision, and renegotiation date of the lease rent. You will need to acknowledge that you have already red the terms disclosed in the lease documents. The seller of the real estate property is responsible of providing the lease document to the buyer.
The leasehold information should be disclosed to the buyer in 10 days as soon as the final agreement on the property sale is reached. It is important that you read the terms and conditions of the lease before signing it. By reading the terms and conditions, you will know how they relate to you. You should read the terms and conditions in the lease agreement before making an offer. You can obtain a copy of the lease from the seller or real estate broker.
Some of the information you need to find out in the lease agreement include lease term, lease rent, lease rent renegotiation date, calculation of new lease rent, surrender clause and amendment to lease. You need to find out how long the lease will last. The lease agreement will reveal the number of years left in the lease agreement. You must understand how much you need to pay for the lease rent. You need to find out when and to whom you are supposed to pay the lease rent. You must find out the penalties for making late payment. In addition, you must find out the amount of the rent adjusts. Many leasehold agreements will include more than one renegotiation date. For example, the renegotiation date will occur at every 10 – 15 years.
