§171-79  Purchase of fee title by lessee. 
At any time after the requirement of construction of a residence upon the
premises has been fulfilled and after ten years from the date of the issuance
of the lessee's residential lease, any residential lessee who is financially
able to purchase the fee title to the premises demised to the lessee by the
lessee's residential lease may, if not in default under the terms of the
lessee's lease, purchase the fee title at its fair market value determined as
of the date of the exercise of the lessee's option to purchase.  The fair
market value shall be determined by appraisers and shall exclude the value of
improvements erected by the lessee and shall be determined as if the premises
were not subject to the residential lease or to any mortgage made by the
lessee.  The patent or deed issued upon purchase shall state that within the
ten-year period following the date of issuance of the patent or deed, the land
or any interest therein shall not, without the written consent of the board of
land and natural resources, be sold, leased, or otherwise transferred to any
person disqualified under sections 171-74 and 171-75, except that the lessee
may mortgage the premises and improvements, without the board's consent, to
recognized lending institutions, which mortgage may be freely assigned by the
mortgagee and the fee title sold to any person or corporation or agency of
government at or after foreclosure. [L 1962, c 32, pt of §2; Supp, §103A-75;
HRS §171-79; gen ch 1985]



 



Case Notes



 



  Fee simple interest may be purchased under §171-99(a) by
payment of "fair market price", which, under this section and
§171-99(a), requires appraisers to ignore both the value of improvements
erected on the premises and the lease encumbrances.  85 H. 217, 941 P.2d 300.