What is a CPR / Condominium Project Regime?


When searching for real estate on Kauai, you may see CPR as the “ownership” type. CPR is a very unique ownership designation that you should be aware of as you consider ownership.

What is a “CPR” property.

Condominium Property Regime (“CPR”) refers to the specific form of ownership and governing process created when real property becomes a condominium or separate parcel of land. The process of creating a condominium is often referred to as "CPRing" property. But the term condominium is a form of ownership in a parcel of land, not necessarily referring to a condominium in the traditional sense.

Why CPR?

Two advantages of condominium ownership are separate mortgages and property taxes for each “apartment owner”. Creating a CPR does not increase the number of apartments permitted on the property. Neither does the CPR determine or change the zoning. An owner of a CPR unit is entitled to exclusive ownership of their unit, but the land is a common element, owned jointly in common with the other owners of the CPR. It can be created for all types of properties - high rises, townhouses or detached units (single-family homes) as well as many different types of uses such as residential, commercial, industrial and agricultural.

History of CPR

Kauai was and still is an agricultural community and historically, land parcels were divided into larger pieces of land. These larger parcels of land were restricted to a few land owners who were forced to create Hui's (groups) to divide up the cost of these large parcels of land. Now with the option of a CPR, buyers can now purchase smaller parcels of land individually instead of with multiple buyers/owners.

Things to Think About if Buying a CPR

As an owner of a CPR, you are an owner of your property and have a separate mortgage, title, tax assessments and insurance. However, you are still part of the CPR development according to the County Planning Department. Your applications to build additional structures are based upon what already exists within that CPR development as a whole. You will likely share driveways, septic systems and utilities. Additionally, getting financing on a CPR unit can be a bit more difficult since your property is tied to others within the development.

How to CPR?

Most likely, you'll need to hire an attorney to CPR your land. A condominium is created when the following items are recorded at the Bureau of Conveyances or filed at the Office of the Assistant Registrar of the Land Court: 1) Declaration of Condominium Property Regime; 2) Bylaws of the Association of Apartment Owners 3) Condominium Map (floor plans); and 4) Master deed or lease. The property owner(s) may be the developer of the condominium project. However, if the developer is not the property owner(s), then the owner(s) must acquiesce to submission of the property to CPR by consent and joinder to the Declaration of Condominium Property Regime.

This article is for general information purposes only and is not meant to be a complete resource for CPRs and CPRing a property.

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