Written by Kai Ioh & Emil Knysh
Buying on the Big Island is not like buying on the mainland
Hawai‘i has a set of conventions the rest of the country doesn’t use. Leasehold land, resort community assessments, HARPTA on the sell side, GET on rentals, and a two-title-company escrow structure all show up in a typical transaction here. None of it is complicated once you know the rules, but every one of them can catch a mainland buyer off guard. This guide walks through what actually matters when you’re buying on the Big Island.
Fee Simple vs Leasehold
In fee simple ownership, you own the land and the improvements outright — the same as most transactions on the mainland. In leasehold, you own the improvements but lease the land from the underlying owner (a private trust, a state entity, or a Hawaiian Homelands equivalent), typically for a set term with a periodic rent reset. Leasehold properties are usually priced lower than comparable fee simple, but the lease terms, remaining years, and reset schedule affect resale, financing, and long-term equity in ways buyers should understand before making an offer.
On the Big Island, the majority of resort community listings are fee simple. Leasehold shows up more often in older Kailua-Kona condominiums and a few coastal parcels. Before you fall in love with a specific unit, confirm which one you’re looking at — the MLS listing states it, but we always double-check against the recorded documents.
Understanding Resort Communities
The premier communities on the Kohala Coast — Mauna Lani Resort, Mauna Kea Resort, Waikoloa Beach Resort, Kūkiʻo, Hualalai, Kohanaiki — each have their own governance, amenity structure, and fee schedule. Some assessments are HOA-style monthly dues; others are club memberships that convey with the deed (or, in some cases, require a separate application to the club). A property in Hualalai without an active Hualalai Resort Club membership is a very different asset than one with a fully paid membership.
Ask three questions on every resort community listing you’re serious about:
- What are the monthly / annual dues, and what do they cover?
- Is club membership included, transferable, or a separate application?
- Are there any special assessments currently under vote or announced?
The listing MLS sheet answers the first question. The second and third require pulling the community’s current governing documents and the last two board meeting minutes. We do this on every property we represent.
Costs Beyond the Purchase Price
A Big Island transaction has a few line items that surprise mainland buyers:
- Conveyance tax — Hawai‘i’s version of transfer tax. Rates step up with price and vary based on whether the buyer intends to occupy or use the property as a second home / investment. Typically the seller pays, but the rate matters if you’re negotiating who bears which closing costs.
- Property tax classification — Hawai‘i County classifies properties into homeowner, residential, vacation rental, and other buckets, each with different rates. If you plan to use the home as a second residence but not rent it, the classification you file matters for your annual tax bill.
- Insurance — Hawai‘i’s hurricane and lava-zone considerations affect premiums. Properties in lava zones 1-2 (the active flow areas) can be difficult to insure at all through standard carriers; zones 3-9 have varying premiums.
- GET (General Excise Tax) — if you plan to rent the property as a vacation rental, GET applies to gross receipts. Not applicable to owner-occupied second homes.
Financing from the Mainland (or Internationally)
Most of our buyers finance from a mainland or international bank. Local Hawai‘i lenders (First Hawaiian, Bank of Hawaii, Central Pacific) understand the local market well but often move more slowly than a large national or online lender. Both work; the trade-off is speed vs local familiarity with resort community assessments and leasehold structures.
If the property is a condo in a resort community, some national lenders require the HOA’s financial documents (reserves, delinquency, insurance) before approving the loan. Getting those documents pulled early in the transaction saves days at closing.
Title, Escrow, and Closing on Hawai‘i
Hawai‘i uses an escrow-and-title-company structure similar to California, but with local variations. Title insurance is standard. Recording happens at the Bureau of Conveyances (for regular system land) or with the Land Court (for registered land). Which one your property falls under affects a few procedural details but not the buyer experience meaningfully.
Closing on the Big Island typically runs 30 to 45 days from accepted offer, depending on financing. Cash closings can complete in 10 to 14 days once inspections are cleared. We coordinate all of this with the title company on your behalf.
What Working With KE Team Looks Like
Every buyer we represent starts with a conversation about what you actually want — full-time residence, second home, investment, resort villa lock-and-leave — because those different goals lead to genuinely different property recommendations. Kohala Coast oceanfront is a different asset class than a Hualalai condo, which is different from a Holualoa hillside single-family. We don’t try to sell you the property we happen to have listed. We surface the properties that fit what you told us.
Once we’re looking at specific listings, we handle: pulling community and property records, coordinating showings (in-person or by video walkthrough for mainland / international buyers), writing and negotiating the offer, coordinating inspections with the right local specialists (structural, pest, water tank if relevant, solar system if relevant), reviewing HOA financials, and driving the transaction to close.
After close, we introduce you to the local vendors we trust — property manager if you’re renting, landscaper, house cleaner, handyman — and stay reachable for whatever comes up. Most of our clients come back to us for their next transaction.
Next Steps
If you’re thinking about buying on the Big Island, the fastest way to start is a 20-minute call with Kai or Emil. Tell us what you’re looking for and we’ll put together a short list of specific properties and communities that match — before you spend hours on Zillow.