Property Management

What is 'condominium fee simple' and how does it differ from a regular condominium in Hawaii?

AA. There is no difference; all condominiums are fee simple
BB. In a fee simple condominium, the unit owner owns the land beneath their unit in fee simple (not leasehold), providing more secure ownership than a leasehold condominium✓ Correct
CC. Fee simple condominiums can only be purchased with cash; no mortgage financing allowed
DD. A condominium fee simple is a type of timeshare arrangement

Explanation

A fee simple condominium means the unit owner holds fee simple title to both their unit and an undivided interest in the common elements, including the land. In contrast, a leasehold condominium owner holds fee simple title to their unit but the land is leased. Fee simple provides more secure, permanent ownership with no lease expiration concerns.

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