On Maui, creating a Condominium Property Regime (“CPR”) allows a property to be divided into two or more separate units of ownership. This is an incredible opportunity to divide up a property without going through a formal subdivision process which takes much longer, and in many cases can be cost prohibitive. Even though the underlying land continues to be one parcel and shares the same tax map key, a condominium map further defines each specific unit and their corresponding limited common elements. This process allows for separate ownership, control, and the potential financing of each unit, and its appurtenant limited common elements.
The CPR process on Maui generally takes 12 to 18 months to complete after your attorney receives the CPR Site Plan from your surveyor and the CPR style Floor Plans and Elevations from your architect. It costs approximately $15,000-$25,000 in legal fees, around $4,000 to $6,000 in surveyor and architect costs, and about $1,500-$2000 in State of Hawaii application and recording and title costs.
To create a condominium property regime (CPR) on Maui, you’ll need to follow a specific set of steps and adhere to the relevant laws and regulations. Here’s a general overview of the process:
- Work with a local broker like the Sayles Team who is intimately familiar with CPR properties and has relationships with all the professionals who can help you push your CPR project through in a timely manner. Our team has lots of experience in this field and would be happy to represent you in the acquisition of the property and leveraging our relationships with local experts in the process.
- Hire a local attorney: You will need to consult with a real estate attorney who specializes in condominium law in Hawaii. They will guide you through the legal requirements and ensure compliance with local regulations.
- Hire an experienced surveyor: A surveyor can help establish and mark the legal boundaries of your property. They can examine the title report, historical records and conduct field surveys to accurately determine the property’s boundaries for the CPR map.
- Hire a local engineer and architect: The engineer and architect work hand in hand in creating your CPR map. The CPR map typically consists of: an as-built certificate signed and notarized by the surveyor, the engineer, and the architect, a site plan depicting the layout and location of the units, the limited common elements, the common elements, the easements, the site access, and other required features. It also can depict the floor plans and the four sided exterior elevations for each existing building. Once a full draft CPR map is completed, the attorney will review and revise the map for statutory compliance.
- Have Your Attorney Create a Declaration: The first step is to draft a declaration of condominium. This document will outline the rights and obligations of unit owners, establish the condominium property regime, and define the common areas and limited common areas. It should also include provisions regarding governance, maintenance, and any specific rules or restrictions for all of the units on the property.
- Prepare Governing Documents: Along with the declaration, you’ll need to create other governing documents such as the bylaws, articles of incorporation (if forming a homeowners’ association), and rules and regulations. These documents will govern the operation and management of the condominium property regime.
- Obtain Approvals and Consents: Before filing the CPR documents, you may need to obtain certain approvals and consents. This can include approval from the County of Maui’s Department of Planning or other relevant authorities to ensure compliance with all necessary permits, licenses, and regulations.
- Record CPR Documents: Once the necessary documents are prepared and approvals obtained, they must be recorded with the Bureau of Conveyances in Hawaii. This step makes the CPR legally recognized and ensures public notice of its existence.
Remember that the process may involve additional steps and requirements specific to Maui or your particular development. Working with a knowledgeable attorney will ensure compliance with all applicable laws and regulations.
If all of the above steps seem overwhelming, you might want to hire a CPR consultant if you’re not familiar with the process and desire assistance. It can be a lengthy process and takes patience. Remember, if it was easy, everyone would do it! Being physically on Maui helps ensure things materialize sooner rather than later.
Please reach out to The Sayles Team for our list of experienced CPR professionals which includes attorneys, surveyors, architects and consultants that can assist you.
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Aloha,
Anthony Sayles R(S)
808-280-6532