Buying in Kailua-Kona and keep seeing “CPR” in listings? You’re not alone. Hawaii’s Condominium Property Regime can shape what you own, what you share, and how you finance and insure a property. In this guide, you’ll learn how CPR works on the Big Island, what to check before you commit, and how to protect your goals whether you’re buying a condo, a CPR’d home, or land. Let’s dive in.
CPR basics in Hawaii
In Hawaii, a Condominium Property Regime sets up shared ownership of common elements while giving each owner separate rights to a defined unit or parcel. The CPR creates an association to manage shared services and spells out your rights and responsibilities. The details live in the governing documents, which you should read before you remove contingencies.
Key documents to request and review:
- Declaration and plat: Defines units or parcels, boundaries, easements, and each owner’s undivided interest.
- Bylaws and house rules: Explain governance, elections, meetings, daily use rules, parking, pets, and rental policies.
- Financials and reserves: Budgets, recent statements, and any reserve study help you assess long-term planning.
- Insurance summary: Shows what the master policy covers and deductibles that may pass to owners.
- Management agreement and contracts: Reveal service costs and term commitments.
- Estoppel or resale certificate: Confirms fees due, assessment status, and compliance.
For the legal framework, review Hawaii law in HRS Chapter 514B (Condominiums) and consumer guidance from the Hawaii Real Estate Commission.
CPR ownership types in Kona
You will encounter different CPR setups around Kailua-Kona. Each affects financing, insurance, taxes, maintenance, and resale.
Traditional condos
You own the interior of a unit plus an undivided share of common elements like roofs, exterior walls, and grounds. The association manages operations, and you pay monthly assessments. Confirm who insures the building envelope, whether rentals are allowed, and the health of reserves.
CPR’d fee-simple homes or lots
In some subdivisions, you own a fee-simple parcel and share responsibility for roads, gates, drainage, or open space. Rules and assessments still apply because the community is governed by the CPR declaration. You get land ownership plus the simplicity of shared infrastructure.
CPR’d land
Developers sometimes use a CPR to divide a larger parcel into defined areas of exclusive use. You may have exclusive rights to a portion while sharing the rest. Confirm whether you own the dirt or a unit interest only, and verify boundaries on the plat and survey.
Leasehold CPR properties
Some units or lots are leasehold. You purchase a long-term lease rather than the land in perpetuity. Lease length, rent escalations, and renewal terms can limit financing options and affect resale. Ask your lender about minimum lease term requirements and review the ground lease with an attorney.
Fee simple vs. leasehold
Fee simple means you own the property interest indefinitely. Leasehold means your rights expire at the end of the lease unless renewal terms exist. Lenders, appraisers, and buyers treat leasehold differently, which can impact loan choices and price. Always confirm the ownership type early in your search and request the ground lease if applicable.
Rentals and use rules in Kailua-Kona
Many associations limit or prohibit short-term rentals. Even if a property allows them, you must comply with county rules and state taxes for transient accommodations. Before you plan income, confirm the project’s rental policy and check county guidance from the Hawaii County Planning Department.
If you operate a short-term rental, you are generally responsible for state Transient Accommodations Tax and General Excise Tax. Noncompliance can lead to fines and reduced income. Match your intended use with both HOA rules and county regulations before you write an offer.
Due diligence checklist
A careful review of documents and risks helps you align expectations and avoid costly surprises.
Before you write an offer
- Confirm ownership type: fee simple or leasehold. If leasehold, request a summary of the ground lease.
- Check unit or lot boundaries using the plat and survey references in the listing or title records.
- Ask about rental policies, owner-occupancy ratios, and any resale approval requirements.
- Do a quick financial check: current budget, notices of special assessments, and any known litigation.
- Talk to your lender about project approval needs and product options for the specific property type.
After your offer is accepted
- Governing documents: Declaration, plats, bylaws, rules, and any amendments.
- Financials: Budgets and financial statements for the last 2–3 years, bank statements, and any reserve study.
- Meeting minutes: Board minutes for 12–24 months to uncover big projects or governance issues.
- Insurance: Master policy summary, certificate of insurance, and deductible structure.
- Contracts: Management agreement and service contracts for landscaping, security, or utilities.
- Estoppel or resale certificate: Confirms dues, assessments, and compliance status.
- Title and taxes: Preliminary title report and current tax bills.
- Leasehold: Full ground lease and amendments, including escalation, assignment, and expiration terms.
- Rentals: If relevant, a rent roll and any existing tenant leases.
Red flags to watch
- Low reserves with deferred maintenance or repeated special assessments.
- Pending litigation involving the association or developer.
- High delinquency rates that may signal financial stress.
- Rental restrictions that conflict with your plans.
- Short remaining lease term or onerous ground lease clauses.
- Master policy with high deductibles or coverage gaps for local hazards.
Timeline tips
- Pre-offer: Verify ownership type, talk to your lender, and review known hazards.
- Offer: Include contingencies for documents, reserves, and financing.
- Due diligence: Order title, request the full association packet, inspect the property, and get insurance quotes.
- Before closing: Confirm no new assessments and secure your mortgage commitment and owner policy.
Financing and insurance
Financing depends on the project’s eligibility and your loan type. Lenders may have requirements for owner-occupancy, reserve levels, and single-entity ownership limits. Start conversations early so you understand product availability for condos, CPR’d lots, and leasehold.
Insurance divides between the master policy and your owner policy. Find out where the master policy stops and your HO-6 or homeowner policy must start. Ask about wind, hurricane, earthquake, and lava exclusions, and how deductibles are allocated after a loss. In flood zones, separate flood insurance may be required. Use the FEMA Flood Map Service Center to see if the property sits in a special flood hazard area.
If you plan to rent short-term, confirm that your policy allows business use and rental liability. Coverage needs can differ for vacation rentals versus owner-occupied homes. Clarify requirements before you remove contingencies.
Local hazards to check in Kona
Kailua-Kona properties can be exposed to unique island risks. Confirm the property’s status for each item below and adjust your insurance and planning as needed.
- Flooding: Review the property’s flood zone using the FEMA Flood Map Service Center.
- Tsunami: Check evacuation and inundation information through NOAA tsunami resources.
- Lava hazards: Review lava-flow hazard zones with the USGS Hawaiian Volcano Observatory.
- Coastal erosion and sea-level rise: Ask for any prior assessments or engineering reports when you are close to the shoreline.
These factors can influence insurance costs, lender requirements, and resale appeal. Build them into your budget and timeline.
Resale and marketability factors
A healthy association supports long-term value. Strong reserves, a clear maintenance plan, and reasonable rules help attract future buyers. Rental policies and county permitting for short-term rentals can also expand or shrink the buyer pool.
Leasehold units can sell at a discount compared to similar fee-simple properties. Remaining lease term, rent escalations, and renewal terms affect both pricing and financing. If resale potential matters to you, weigh these items alongside location and lifestyle.
When to bring in pros
- Real estate agent: Engage early for local context, document requests, and negotiation strategy.
- Lender or mortgage broker: Confirm project eligibility and loan options, especially for condos and leasehold.
- Real estate attorney: Recommended for leasehold and any complex CPR declarations or litigation.
- Inspectors: General home inspection plus roof, structure, pest, or mold specialists as needed.
- Insurance broker: Experienced with Hawaii exposures to price flood, hurricane, earthquake, and volcanic coverage.
- Title company or closing attorney: Verify title, liens, easements, and association standing.
Make your CPR purchase smoother
The CPR sets the rules of the road for shared property in Hawaii. When you understand what you own, what you share, and the financial health behind it, you can buy with confidence. Align your plans with the association’s rules, confirm county requirements, and budget for local hazards and insurance.
If you want local guidance with clear next steps, connect with our team at Hawai’i Estates. We combine neighborhood insight with construction-savvy advice and meticulous transaction management so you can move forward with aloha and clarity.
FAQs
What does CPR mean in Hawaii real estate?
- CPR is a legal framework that creates separate ownership of units or defined parcels while sharing common elements, governed by a declaration and association.
Do I own the land under a Kona condo?
- Typically you own the unit interior plus an undivided interest in the common elements, which include the land, but not the land exclusively.
Can I do short-term rentals in a Kona CPR?
- It depends on both the HOA’s rules and Hawaii County regulations; confirm policies with the association and the Hawaii County Planning Department.
What is an estoppel or resale certificate in a CPR?
- It is an association document that confirms fees owed, assessment status, and compliance, often required by lenders and buyers during escrow.
How does leasehold affect financing in Kona?
- Lenders often require a minimum lease term beyond loan maturity, and lease terms can limit product options and affect pricing and resale.
