Property Management

In Hawaii, what is a 'ground lease' and how does it differ from a standard property lease?

AA. A lease for the basement level of a building only
BB. A long-term lease of land only, typically 55–99 years, where the tenant builds improvements on the leased land✓ Correct
CC. A lease requiring the tenant to maintain the grounds/landscaping
DD. A short-term lease for agricultural use of vacant land

Explanation

A ground lease is a long-term lease of land only. The tenant/lessee builds and owns improvements on the land for the lease duration. Upon expiration, improvements typically revert to the landowner.

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