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🚨Lease Rent Challenge🚨 🚨Arbitration is On!🚨
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HIDDEN DOCUMENTS DISCOVERED!
Challenge the New Canterbury Lease Rent
The AOAO’s rent agreement increases ground lease rent by almost 16×.
In addition to 5 other well documented errors described below, the agreement is void because 3 recorded deed restrictions on ALL 151 unit deeds requires:
"Decisions related to property ownership, land rent negotiation and payment of related property expense be made by a Management Committee consisting of the land owners on behalf of all land owners...."
Status Update
Status Update
The AOAO is the Manager of 84 residential land owner units with 53.83% majority. The AOAO allowed the Kong Lessors minority to make decisions without authority.
The case consolidated to 6 reasons the rent agreement was void as described below.
The AOAO has AGREED to arbitrate. On June 15, 2026, the Association accepted arbitration before retired Judge Gail Nakatani, administered by Dispute Prevention & Resolution, Inc. There are still details to work out about who will be attending.
SIGNIFICANT DEVELOPMENTS - HIDDEN DOCUMENTS!
UNRECORDED UNDISCLOSED DOCUMENT OBTAINED!
SEE BELOW FOR SIX MORE INDEPENDENT REASONS TO CHALLENGE AOAO DECISIONS AND OTHER SIGNIFICANT DEVELOPMENTS
deed restrictions 02/18/2000 management committee control
Fee Conversion Is the Permanent Solution
The remaining 46.1754% leased-fee interest can be acquired under the authority granted by the recorded condominium amendments, the Co-Owners’ Agreements, and Hawaiʻi Revised Statutes Chapter 514C. The AOAO professional advisors utterly failed to inform the AOAO Board of the existence and meaning of the deed restrictions, and the impact of the individual Sandwich Purchase Consent agreements made with all 54 of the Sandwich Lease Purchasers and the Commercial. All professional advisors completely missed the June 30, 2061, lease expiration date in the deed restrictions.
WE GOT BACK TEN YEARS THAT WAS GIVEN AWAY!
The only way to fix the continuing errors is for the AOAO to comply with Hawaii Statutes and ALL condo governing documents.
THE RENT AGREEMENT IS VOID AND WITHOUT AUTHORITY.
USE THE AUTHORITY GRANTED BY DEED RESTRICTIONS
OBTAIN THE 62 RESIDENTIAL + COMMERCIAL LEASED FEE INTERESTS!
SIX REASONS THE RENT AGREEMENT IS VOID
THE AOAO MUST BE RIGHT ON ALL SIX - WE ONLY NEED ONE!
1. Failure to Exercise Majority Management Committee Control.
1. Failure to Exercise Majority Management Committee Control.
1. Failure to Exercise Majority Management Committee Control.
The AOAO represents the 84 fee-simple owners who collectively own 53.8246% of the land. The recorded Co-Owners’ Agreement assigns property ownership and land-rent decisions to a Management Committee acting for all landowners. The AOAO failed to control that Committee, surrendered majority authority, and allowed the Kong Lessors’ 46.1754% minority interest to control the rent negotiation and refuse to negotiate sale of the fee. The Agreement was executed WITHOUT AUTHORITY!
2. Failure to Appoint Independent Lessee Counsel.
1. Failure to Exercise Majority Management Committee Control.
1. Failure to Exercise Majority Management Committee Control.
HRS § 514B-151(c) requires independent counsel whenever an association is a lessor or sublessor. The AOAO remained the sublessor of eight units, acted as the Kong Lessors’ collection agent, and held a prohibited leasehold-owner interest within 9 months of the lease reset date (7D). No independent counsel was appointed, and no lessee vote or written consent authorized the Agreement. AOAO appointed by Sandwich Lease Consent as AGENT to collect rent for Kong Lessors.
3. Unauthorized Waiver of Mandatory Arbitration.
1. Failure to Exercise Majority Management Committee Control.
4. Unauthorized Modification of 59 Direct-Privity Contracts
Master Lease Paragraph 23 required arbitration when no written rent agreement was reached by April 2, 2025. That deadline passed without agreement. The AOAO continued negotiating and signed the November 14, 2025 Agreement without authority to waive the arbitration rights held by the individual lessees.
4. Unauthorized Modification of 59 Direct-Privity Contracts
4. Unauthorized Modification of 59 Direct-Privity Contracts
4. Unauthorized Modification of 59 Direct-Privity Contracts
The 2018–2019 sandwich-lease agreements created 59 separate DIRECT contractual relationships between the AOAO, Kong Lessors and the residential and commercial mini-Master Lessees. Those contracts preserve individual rent, appraisal, arbitration, notice, cure, and consent rights. The AOAO could not modify or waive those rights without each lessee’s authorization.
5. Retroactive Rent Without Legal Authority.
4. Unauthorized Modification of 59 Direct-Privity Contracts
6. Invalid Appraisal and Rent-Calculation Methodology.
The Master Lease, recorded amendments, condominium documents, and Hawaiʻi statutes provide no authority for retroactive rent. The governing documents require rent to be paid IN ADVANCE. The retroactive charges were imposed without contract, consent, statute, or equitable basis.
6. Invalid Appraisal and Rent-Calculation Methodology.
4. Unauthorized Modification of 59 Direct-Privity Contracts
6. Invalid Appraisal and Rent-Calculation Methodology.
The Master Lease requires rent equal to 6% of the fair market value of the applicable PARCEL interests. No PARCEL appraisal was performed. The rent was instead based on the entire land, an unsupported $24 million value, and no discount for the Kong Lessors’ minority and fractional ownership interests. The resulting rent does not comply with the Master Lease or governing appraisal standards.
significant developments
ARBITRATION AGREED
THREE RECORDED DEED RESTRICTIONS
THREE RECORDED DEED RESTRICTIONS
June 15, 2026. Retired Judge Gail Nakatani (DPR). I am naming the AOAO in each of its conflicting capacities AND both Kong entities as Respondents.
This is unnecessary if the AOAO Board and its advisors just read the documents and admit the prior advice was WRONG!.
We could begin the process of acquiring the leased fee from the Kong Lessors - TODAY!
THREE RECORDED DEED RESTRICTIONS
THREE RECORDED DEED RESTRICTIONS
THREE RECORDED DEED RESTRICTIONS
On the title of every unit, created by the Kong Lessors themselves in 2000–2001 REQUIRES:
"Decisions related to property ownership, land rent negotiation and payment of related property expense be made by a Management Committee consisting of the land owners on behalf of all land owners" — not the Board, not the Kongs. The 2025 deal ignored them completely.
WHO REALLY CONTROLS THE LAND
THREE RECORDED DEED RESTRICTIONS
THE LEASE RUNS TO 2061 — NOT 2051
The 84 fee simple unit owners have held 53.83% majority control since 2017, and the authority to buy the fee since 2019. Neither was ever used. The AOAO was never advised by any lawyer, consultant or manager to use the majority power.
THE LEASE RUNS TO 2061 — NOT 2051
THE LEASE RUNS TO 2061 — NOT 2051
THE LEASE RUNS TO 2061 — NOT 2051
Every appraiser and advisor used an expiration ten years too early, distorting every valuation. The Kong Lessors overruled there own Master Lease Spencecliff computation for 06/30/2051. The Kongs’ own recorded Management agreement overrules earlier computation and reestablished expiration to be June 30, 2061.
WE JUST ADDED TEN MORE YEARS TO OUR LEASEHOLD BY CORRECTING PROFESSIONAL ADVISOR MISTAKES.
THE MEMORANDUM
THE LEASE RUNS TO 2061 — NOT 2051
TITLE INSURANCE CLAIMS
July 3, 2026. A 41-section Memorandum & Financial Analysis: the substantive record of every violation, every number, and the fee-acquisition plan. Distributed to the AOAO’s counsel, the professional firms, and owners. Japanese translation in progress.
TITLE INSURANCE CLAIMS
THE LEASE RUNS TO 2061 — NOT 2051
TITLE INSURANCE CLAIMS
Tendered title insurance claims on Unit 24A’s policies. Every sandwich purchaser has an acquisition title policy and a sublease purchase title policy issued by First American and may have a claim.
CANTERBURY PLACE LEASE RENT AND FEE-CONVERSION MEMO
THE WHOLE CASE, IN ONE DOCUMENT
- The November 14, 2025 Agreement increased annual ground rent from approximately $41,789 to $664,925.76, a 15.91-fold increase.
- The rent-setting process did not comply with the Master Lease, recorded sandwich-lease agreements, condominium documents, or Hawaiʻi statutory requirements.
- No required parcel appraisal was obtained, mandatory arbitration was waived, retroactive rent was imposed without authority, and 59 direct lessees were bound without individual consent.
- Recorded Co-Owners’ Agreements assign "Decisions related to property ownership, land rent negotiation and payment of related property expense be made by a Management Committee consisting of the land owners on behalf of all land owners..."
- Eighty-four fee-simple owners collectively hold 53.8246% of the land, while the Kong Lessors retain a 46.1754% minority interest.
- The current lease structure suppresses both leasehold and fee-simple values and creates approximately $28.37 million in building-wide economic harm.
- Acquisition of the remaining leased-fee interest for approximately $8.07 million to $11 million would eliminate ground rent, prevent future rent resets, restore financing and marketability, and convert the remaining units to fee-simple ownership.
- Fee conversion produces an estimated $25 million in net building-wide benefit after litigation and transaction reserves.
The objective is to revoke the defective rent agreement, enforce the recorded governing documents, and complete fee conversion for the protection of all Canterbury Place owners.
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