Condo Property Regime, commonly known as CPR, is a unique aspect of Hawaii real estate that every buyer should understand before making a purchase. CPR is the legal process of converting a single property into multiple individually owned units, and it is widely used throughout Oahu for everything from duplexes to large condominium developments.

Under a CPR, a property is divided into separate units that can be individually owned and sold. Each unit owner holds fee simple title to their specific unit and shares ownership of common areas with other unit owners. This structure is governed by Hawaii Revised Statutes Chapter 514B, which provides the legal framework for condominium property regimes in the state.

There are two main types of CPR properties in Hawaii. The first is a standard condominium development where a developer creates multiple units within a building or complex. The second is a smaller scale CPR where a single family home or lot is divided into two or more units, often seen when a homeowner converts a property with an additional dwelling unit into separately sellable units.

One important consideration for buyers is understanding the difference between a CPR unit and a traditional single family home. CPR units come with shared responsibilities and costs through a homeowners association or similar governing body. Monthly maintenance fees cover common area upkeep, insurance for shared structures, and reserve funds for future repairs.

Before purchasing a CPR unit, carefully review the condominium documents including the declaration, bylaws, house rules, financial statements, and reserve study. These documents reveal important information about the association's financial health, any pending special assessments, litigation, and restrictions that may affect how you can use your unit.

Financing a CPR property can sometimes be more complex than financing a traditional home. Some lenders have specific requirements for CPR properties, including minimum owner occupancy ratios, adequate reserve funds, and no pending litigation. Working with a lender experienced in Hawaii real estate can help navigate these requirements.

Insurance considerations for CPR units differ from single family homes. The association typically carries a master insurance policy for the building structure and common areas, while individual unit owners need their own HO-6 policy to cover their personal property, interior improvements, and personal liability.

CPR properties can offer excellent value and investment potential in Hawaii's expensive real estate market. They often provide more affordable entry points for first-time buyers and can generate rental income when properly structured. However, understanding the unique aspects of CPR ownership is essential for making an informed decision.

At Kristy and Austin Home Group, we have extensive experience helping buyers navigate CPR purchases in Oahu. We can help you understand the specific implications of any CPR property you are considering and connect you with lenders and attorneys who specialize in Hawaii condominium law. Contact us today to learn more about CPR properties on Oahu.