Tropical typhoons constitute an annual threat, particularly to the low-lying atolls. Land Ownership and Use Land ownership in the FSM can best be characterized as one of small holdings. Most property is held as family trusts and land use rights are passed down from generation to generation within the extended family system. Subsurface property rights are synonymous with surface rights. There are no publicly-owned subsurface mineral or water rights in any of the states.
Land ownership is limited by the Constitution to citizens only.
Even domestic corporations which have non-citizen shareholders may not own land. Non-citizen individuals and corporations may lease either public or private lands. Special importance is attached to land in Micronesia both because of its short supply and its traditional importance. Leasing of private lands in particular can be time-consuming, due to fractional ownership and uncertain boundaries and titles. Many parcels of land are held by families or clans which may have different factions, all of whom assert interest in the land.