🏡 Common Vesting Options in Hawaii Real Estate: What Buyers Need to Know

When purchasing property in Hawaii, one important—but often overlooked—decision you’ll need to make is how to take title, also known as vesting. Your choice affects legal ownership, inheritance rights, and how the property is transferred or taxed in the future. Hawaii offers several vesting options, each suited to different types of ownership situations.

Here’s a breakdown of the four most common vesting types in Hawaii:

1. Tenancy in Severalty (Sole Ownership)

This is the simplest form of ownership—a single person or entity owns the property outright.

• 🧍Only one name is on the title.

• ✍️ That person can sell, mortgage, or transfer the property without consent from anyone else.

• ⚰️ Upon death, the property passes to heirs through probate unless otherwise directed in a will or trust.

Best For:
Individual buyers, trusts, or corporations.

2. Joint Tenancy

In this arrangement, two or more people share equal ownership, and it comes with the right of survivorship.

• 👥 All owners must take title at the same time, with equal interest.

• 🔁 If one owner passes away, their share automatically transfers to the surviving joint tenant(s).

• 🛑 Cannot be passed to heirs in a will—this overrides a will or trust.

Best For:
Unmarried couples or family members who want shared ownership with automatic transfer upon death.

3. Tenancy by the Entirety

Exclusive to married couples, civil union partners, or reciprocal beneficiaries, this form of vesting includes survivorship rights and extra protection from individual debts.

• ❤️ Property is owned as one legal entity by both spouses or partners.

• 🛡️ Creditors of only one spouse typically cannot force a sale.

• ⚰️ If one spouse dies, the surviving spouse automatically inherits full ownership.

Best For:
Married couples or legal partners seeking joint ownership and asset protection.

4. Tenancy in Common

Here, two or more people share ownership, but interests don’t have to be equal.

• ➗ One person can own 70%, the other 30%, etc.

• 🔁 There is no right of survivorship—each owner’s share is inheritable and can be sold or transferred independently.

• 🏛️ Can lead to complications in estate planning if not coordinated with a will or trust.

Best For:
Business partners, investors, or co-buyers with unequal contributions or different estate plans.

📝 Choosing the Right Vesting

It’s a good idea to consult with a real estate attorney, CPA, or estate planner to determine what’s best for your situation. Your vesting decision has long-term legal and financial implications, especially in Hawaii where real estate is often held as part of a family legacy or investment portfolio.

Need Help Deciding?
As your trusted Hawaii Realtor, I’m here to help guide you through the entire purchase process—including connecting you with legal and financial professionals when needed. If you’re not sure how to take title or want to make sure your ownership aligns with your goals, let’s talk.