In the United States, including Hawaii, it is very important how you own real estate.There are many ways of owning real estate:

1. In one name only.

This is known as Tenancy by the Severalty.If the person dies, in order to transfer ownership, there is a court process called "probate", which is time consuming and since it is a court proceeding, all the information is public.

2. In the names of the husband and wife.

This is called Tenancy by the Entirety.When one spouse dies, the surviving spouse becomes 100% owner of the property.

3. In the names of two or more persons with each person owning a distinct interest in the property. (case 1)

This is called Tenancy in Common.A, B, and C own a one-third interest in the property, and A, B, and C can transfer his or her interest before death or to anyone by will or trust after death.

4. In the names of two or more persons with each person owning an undivided interest in the property. (case 2)

This is called Joint Tenancy.A, B, and C have an undivided (but not distinct) interest in the property. When A dies, B and C are the owners of the property. When B dies, C becomes owner of the entire property. Only C can transfer his or her interest before his death or to anyone by will or trust after death.

5. Shareholders in a corporation. (case 3)

Shareholders own shares of stock in a corporation, and the corporation owns the property.  Each shareholder can sell or transfer his or her stock before death or by will or trust after death.  The corporation continues to own the property even after the death of any shareholder.

6. Partners in a partnership (case 4)

The property can be owned by a partnership with the partnership owning the property. Each partner owns an interest in the partnership. A, B and C are partners, and the partnership owns the property. Usually, when one partner dies, the partnership is dissolved.

7. Members in a limited liability company. (case 5)

The property can be owned by a limited liability company (LLC) with the LLC owning the property. Each investor in the LLC is called a member. Each member owns an interest in the LLC. A, B, and C are members of the LLC, and the LLC owns the property.

When purchasing real estate in Hawaii, the buyer should consult with an attorney to determine how the property should be owned, because there is significant consequences of real property ownership.