Homeowners who want to buy leasehold properties on Kohala Coast need to check the terms in the leasehold agreement. The seller or the real estate agent will provide you with a copy of the leasehold agreement on Kohala Coast. You can also obtain copies of the lease agreement from the Bureau of Conveyances in Honolulu. Normally, the lease information will be provided within 10 days after the sales contract is accepted. As a buyer, you have the responsibility to read the terms and conditions thoroughly. In the lease agreement, you will find learn about the term of the lease and how much lease rent you are liable to pay. The lease rent negotiation date will also be listed in the lease agreement. The agreement will reveal the calculation method of the new lease rent during renegotiation. The surrender clause is included in every lease agreement.
You have the right to cancel the leasehold contract within 5 days of receiving the lease documents. You can discuss with the seller to reduce or extend the time period of canceling the contract. Buyers should ask the sales agent to provide them with the standard leasehold addendum. You should review the addendum before making an offer for the real estate property. If there is anything you don’t understand about the addendum, you should ask the agent. If you still have questions after reading the lease document, you can seek help from a Hawaii real estate attorney. The attorney has a lot of knowledge about the terms in the lease document so he is able to explain them. He will explain to you how the lease can affect you and your property.
You can either buy the apartment unit with cash or get financing. Most people will not have the money to buy the apartment unit in cash. If you don’t have cash to buy the apartment unit, you need to get financing. If you get financing, you need to put a down payment. After you have paid the down payment, you have to pay the loan installment monthly. The approval of the loan will subject to the lease term. The lesser the number of years remaining on the lease, the harder it will be to get approved for the loan. All banks have their own policies when coming to approve loans for leasehold properties. They will set a minimum requirement on the number of years remaining on the leasehold agreement.
