Condominium Property Regimes
CPR refers to Condominium Property Regime, a legal term used to divide land ownership to separate owners. It’s traditionally used for condos but can also be applied to other properties, which is very common in Hawaii.
To “CPR a property”, is to condominiumize a property into two or more individual units for ownership purposes. In Hawaii, where land is expensive, it’s common that an owner decides to split/sell parts of their property or home. A CPR property can be a single-family home divided in two, or it can be unattached. Sometimes, it’s multiple condo units or structures on one parcel. Each unit is separate and has it’s own identifiable TMK number, deed, property taxes, mortgage, and basic housing expenses. These units are a piece of real property and can be sold or leased in the future.
CPR properties bring opportunity to homeowners in Hawaii. For buyers, the opportunity to buy and own a single-family home for less than a traditional single-family sale, which requires buying the entire property. Also, buyers with pets may find that CPRs offer an affordable opportunity to buy a pet-friendly home with a yard. For those who decide to develop a CPR, it gives them the opportunity to cash in by selling part of the land or home.
Each CPR group will have different specifics. For example a property owner may split their property into three CPR lots because zoning does not allow for subdividing. The three lots may have shared elements, like a driveway, a water meter, etc. There will be HOA’s dictating how those shared aspects are handled. Each lot owner owns the land and improvements, and contributes in the arranged way to the shared elements.
The Pines and Kamani Trees are the primary examples of large CPR’s in the Kona area, but there are thousands that owners of single parcels split into are 2-3 lots. Often the seller lives on one and sells the other(s). The owners of the sold lots can improve (within land use and zoning regulations), and use their property as they can any fully owned property and within the HOA regulations. The most important factors when considering a purchase of a CPR property are:
- What are the shared elements?
- How many are they shared with?
- What are your maintenance responsibilities?
- Are there HOA / maintenance fees and what is covered?
- What is included in the fees?
- Review the complete Codes, Covenants, and Restrictions (CC&R’s)
