You’ve been looking for a house in Hawaii for a while now; scouring the internet, picking your real estate agent’s brain and rifling through craigslist ads. You’ve finally found a house that meets your needs; a detached single family home in the area you love- everything looks great... until you see something in the property description you just don’t understand: Ownership: CPR.
Fear not, CPR properties are nothing to be afraid of and are quite common here on the Big Island.
Oftentimes there will be parcels of land that are big enough to have multiple homes on it but will never meet the requirements to be subdivided into a traditional subdivision..
This is where a CPR would come in handy; by obtaining proper approvals and filing a Declaration of Condominium Property Regime, Association Bylaws, Master Plan and Project Map with the Bureau of Conveyances, the owner can turn his land into a Condominium Project. Designated areas can be developed into homes, which will have condo unit designations.
CPR’s are governed by an association, and are often subject to CC&R’s- meaning you would need to abide by certain rules and restrictions and most likely pay a maintenance fee.
Make sure you review any condo documents carefully so that you understand exactly what is entailed with the ownership of the unit- the last thing you want to do is buy into something you don’t understand.
In most cases the lot the CPR’d unit sits on serves as a ‘limited common element’. This means you have exclusive rights to its use and pay to maintain it. In a CPR’d apartment building, limited common elements would be the lanai, parking spaces and storage units assigned to the unit. With a CPR’d house the limited common elements would be land within the lot boundaries that the homes sits on (or whatever is described in the documents).
What does that mean? It’s a fancy way of saying you and only you get to use the lot your house sits on.
The bottom line? Don’t be afraid of CPR properties. Use a knowledgeable Realtor that can explain the pros and cons of the properties you’re interested in.