So You Want to Go Condo? Elements Which Provide for Exclusive Use by Dependent Upon the Form of Ownership

So You Want To Go Condo? elements which provide for exclusive use by dependent upon the form of ownership. Hawaii Administrative Rules Chapter 107 an owner (versus ownership) often include Provide the county agency with the tax map also contains specific requirements for This brochure is intended to provide general yard areas and parking spaces. key number or property address to confirm CPRs. Copies of statutes, rules, and information on the process of creating and the number of units and allowable uses and informal Commission rulings are available registering a condominium. Condominiums can exist in many structural structures. on the Commission’s website. forms; for example, offices, single family The first thing to understand when deciding dwellings, townhouses, commercial In Hawaii, only the owners (or lessees) can How is a condominium project whether real property should be submitted warehouses, agricultural plots, boat slips, submit real property to a CPR. registered? to a condominium property regime (“CPR”) units in a low or high rise building, or is that a condominium is a form of parking stalls. A condominium is created when the Before any unit is offered for sale or sold, ownership. A condominium is not a structure following documents are recorded at either the condominium project must be registered or a building. Condominiums also have a variety of uses. the Bureau of Conveyances or filed at the with the Commission. Condominium As permitted by local zoning and permitting Office of the Assistant Registrar of the Land registration packets, including the laws, a condominium could be residential, Court depending upon the specific real developer’s public report form, instructions, office, commercial, industrial, agricultural, or property: checklists, and fee information, are available a combination of uses such as a building free from the Commission on its website. with both residential and commercial - Declaration of condominium condominiums. property regime; A developer’s public report is a disclosure - Bylaws of the association of unit statement meant for prospective CPRing a property is not the same thing as owners; purchasers. The report provides a subdividing a property. CPRing a property - Condominium map (floor plans and description of the condominium project, What is a condominium property will not determine what can be built on a elevation); and including permitted uses, restrictions, regime or “CPR”? property, how many units can be placed on - Master deed or lease. warranties, and encumbrances. a property, or change building, zoning, CPR is a specific form of ownership and density, or usage restrictions imposed by It is strongly recommended that these Once a developer’s public report is filed, the governing process created when real local laws. documents be drafted with the advice of an Commission may issue an effective date. property is submitted to the condominium attorney who specializes in this area of law. On average, it takes from six to eight weeks property regime, a process often referred to What property can be CPRed? A Hawaii registered architect or professional from submission of a complete registration as CPRing a property. The creation and engineer must certify the condominium map file to the Commission for the issuance of an In Hawaii, the condominium project must administration of CPRs are governed by (or floor plan and elevation). How long it effective date. Larger or more complex contain two or more units as defined by Chapter 514B of the Hawaii Revised takes for a developer to create a CPR projects may take longer. Statutes (“HRS”). statute. The number and type of units must depends upon how long it takes to create meet zoning requirements and be allowable. and record or file the required documents. The issuance of an effective date is not an Condominium ownership is ownership of a Neither the Hawaii Real Estate Commission approval of the condominium project. The unit and a percentage of undivided interest (“Commission”) nor the counties approve or The property owner(s) or lessee(s) may be Commission does not approve or in the common elements. The unit owner is disapprove what real property can be the developer of the condominium project. disapprove any condominium project. entitled to exclusive ownership of the unit, CPRed. If the developer is not the owner or lessee, Basically, the issuance of an effective date but the underlying land is a common then the owner must agree to the means that units can be sold. element owned in common with other unit How is a CPR created? submission of the property to CPR by When a circumstance occurs that would owners in the condominium project; for Generally, the first step in creating a CPR is consent and joinder to the declaration of example, common elements are often condominium property regime. render a public report misleading in any to contact the appropriate county agency to material respect as determined by the lobbies, hallways, roofs, roadways, and ascertain the allowable uses of the real recreational facilities. Limited common property. The allowable uses are not Commission, the developer must submit an Real Estate Branch amendment to the developer’s public report. CONDOMINIUM: About Us Prior to registration with the Commission The Real Estate Branch, as part of the and the issuance of an effective date for a Professional and Vocational Licensing public report, any attempt to encourage the SO YOU WANT TO acquisition of a legal or equitable interest in Division, assists the Real Estate GO CONDO? a condominium, including advertising, is Commission in carrying out its responsibility prohibited by statute. Violators are subject for the education, licensure and discipline of to a fine of up to $10,000 or imprisonment real estate licensees; registration of for up to one year or both. In addition, condominium projects, condominium violators are subject to a civil penalty of up associations, condominium managing to $10,000 for each violation. agents, and condominium hotel operators;

and intervening in court cases involving the How is a condominium association real estate recovery fund. Real Estate Branch registered? Department of Commerce and An association of unit owners (“AOUO”), Learn more about the Real Estate Subscribe Consumer Affairs formerly known as association of apartment Branch (REB) of the Department of Receive emails on relevant condominium owners, is the governing entity created by Commerce and Consumer Affairs educational materials. Sign up now at October 2016 the CPR. Each AOUO of six or more units Check out the REB website at http://cca.hawaii.gov/reb/subscribe/ must register biennially, every two years, www.hawaii.gov/hirec for more information with the Commission. Please call the Real and some frequently asked questions. Contact Us Estate Branch office to obtain a registration Condominium Hotline: 808-586-2644 form.  What services does the REB provide Hours: 9 AM – 3 PM to the condominium community? Email: [email protected] Chapter 514A, HRS, condominiums  How do I file a complaint against my Website: www.hawaii.gov/hirec

In the event a property was submitted to a association? CPR prior to July 1, 2006, and thus subject  What laws apply to my condominium to Chapter 514A, HRS, please contact the association? REB for specific information on registration.  How do I get a copy of my association documents?  And many more questions answered

CONDOMINIUM: SO YOU WANT TO GO CONDO? Real Estate Branch 335 Merchant Street #333 Honolulu, HI 96813