WHAT IS INTERVAL OWNERSHIP?

Interval Ownership is a relatively simple and comparatively affordable ownership arrangement in which a two to six individuals or entities hold legal title to a single parcel of real estate or a condominium unit. We call the owners "Interval Owners" in our project documents. The Interval Owners are called "co-tenants" according to Hawaii law. This means you share all aspects of ownership and responsibility for the property according to how much of the title you have purchased. Once you acquire title, your interest in your property legally is an interest in REAL ESTATE. You, along with the other Interval Owners, enjoy all the usual benefits of ownership of the property: renting, managing the property, and handling payment of taxes and maintenance costs and so on. Together with the other Interval Owners, you retain legal control.

Some owners prefer to hold their ownership in a Limited Liability Company ("LLC") or Partnership ("LLP") to avoid certain legal situations where they could be responsible for the debts or actions of other owners. Some owners want the property itself in an LLC or LLP; so all owners have no responsibility for other owners in most circumstances. The managing co-tenant or LLC Manager if that is how you hold title, will take care of the ordinary paying of bills, setting up accounts, cleaning services, landscaping and so on. Without an LLC or LLP the manager is usually the original seller, which changes to one of the owners after all intervals have been sold.
Only you, on the other hand, as individual owner(s), can execute deeds, mortgages, leases of your time period and all other legal documents affecting legal title to your property, or you can give written instructions from you, the Interval Owner(s), to those who work for you.

The current beneficial owner of Units now provide you with an opportunity to own your own Hawaiian vacation home for at least sixty days of every year, with shared common expenses and professional management by licensed real estate professionals or by members of your group, as the majority will determine.