What is a "CPR"?
A Condominium Property Regime (CPR) is a legal way (Hawaii Revised Statutes 514B) to split a single property into two or more units of ownership, usually with "attached" limited-use common elements (driveway) that belong to each unit.
This means that each CPR unit has its own fee simple ownership (deed), encumbrances, mortgages, and CPR TMK number, which can be found at the end of the property Tax Map Key.
All CPR units are transferable, saleable, and rentable. The owner(s) of each unit is responsible for its own insurance, property taxes, repairs, and expenses.
Due to the wide range of CPRs available, they can be utilized for various purposes such as residential, office, commercial, industrial, or mixed-use.
One frequently asked question is how to initiate the process of making a CPR. Only individuals who are either lessees or owners are eligible to submit property to a CPR in Hawaii. The creation of the CPR might be cumbersome, hence it is advisable to conceptualize the CPR process as consisting of two distinct components.
Step 1
- Obtain authorization from the City and County of Honolulu to implement a CPR (Condominium Property Regime).
- The property already possesses a valid Existing Use Permit for the existing structures on the premises.
- The property has also obtained an Approved Conversion Letter from the C&C Department of Planning and Permitting.
- Upon receiving the approval letter from the C&C, the property is officially recognized as CPR Approved.
Upon completion of Step 1, the Real Estate Commission requires the following in order to evaluate the approval of a CPR. However, it is important to note that this list is not exhaustive, as each property has its own distinct requirements for development and approval.
Step 2
A CPR map, which includes floor plans and elevation details.- A declaration of a CPR, which outlines the legal creation of the property.
- The developers public record, which contains information about the developer of the property.
- The bylaws of the association, which are the rules and regulations governing the property. • House rules, which are additional rules specific to the property.
- The master deed or lease, which is the legal document outlining ownership rights and responsibilities.
- Disclosures about the property, which provide important information about the property's condition or any potential issues.
- Maintenance fees, which are the fees paid by owners for the upkeep of the property.
- An outline of common area maintenance, which details the maintenance responsibilities for shared areas of the property.
We strongly advise seeking the guidance of a specialized attorney when preparing these documents. Real estate attorneys collaborate with property owners and other professionals, such as a Hawaii-registered architect or professional engineer, who are responsible for certifying the condominium map. The attorney will compile all the aforementioned items, and generate and submit a package to the Real Estate Commission. Subsequently, the Real Estate Commission evaluates the request and either grants approval or returns the package for necessary revisions.
Contact us anytime to guide you through this process.
