Considering a CPR lot on the Big Island? You can gain flexible ownership and a lower entry point compared to a full subdivision, but only if the paperwork, permits, and infrastructure line up. If you want a smooth exit later, you need to verify what you are actually buying and how county rules will affect value.
In this guide, you will learn what a Condominium Property Regime is under Hawaii law, how CPRs differ from subdivisions in Hawaii County, the local permits and hazards that matter most, and the due diligence steps that protect your investment and resale options. Let’s dive in.
CPR basics in Hawaii
What a CPR is
A Condominium Property Regime is a form of ownership created under Hawaii’s state condominium law (Hawaii Revised Statutes, Chapter 514B). A recorded declaration and a condominium map define the units and the common elements. Each unit can be sold and financed, and may receive its own TMK and title record once processed.
Why CPRs are used on the Big Island
On the Big Island, CPRs are often used to create smaller saleable interests from a larger parcel without going through a full county subdivision. Investors and developers may use CPRs to create individually transferable units while reducing public subdivision infrastructure obligations. That said, creating a CPR does not remove county requirements tied to zoning, infrastructure, and permits.
CPR vs subdivision: key differences
Legal status and approvals
- CPR formation: A state process under HRS Chapter 514B that creates condominium units plus common elements.
- Subdivision: A county process that creates new fee simple lots through subdivision approval.
A CPR can be formed without county subdivision approval, but it still must comply with county zoning, building and infrastructure standards, and any required permits. If those pieces are missing, units can become hard to market or finance.
Overlap you cannot ignore
Even with a CPR, the County of Hawaii will enforce standards for use, density, setbacks, road access, drainage, water, and wastewater. Counties typically require proof that intended uses and infrastructure meet local standards before they will issue permits or a certificate of occupancy. A CPR does not create automatic rights to county water or sewer, nor county road acceptance.
Big Island rules that shape value
Zoning and allowed uses
Confirm the zoning district and what it allows. Use, density, minimum lot size, and setbacks all flow from zoning. If your plan involves residential use, agriculture, or any rentals, verify that the zoning supports it. Violations are a real resale risk.
Water and wastewater
Public water is limited in many rural areas of the Big Island. Check whether a county water meter is available or committed in writing. Many CPRs rely on on-site wastewater systems. Septic design and approvals are regulated by the Hawaii Department of Health and the county. Confirm approvals before you count on any build-out or sale timeline.
Coastal, SMA, and state land use
If the property is near the shoreline, factor in shoreline setbacks and the county’s Special Management Area permitting. State land use districts also apply across the island. Parcels in the conservation district or with conservation easements will require oversight and may restrict development intensity.
Hazards and insurability
Parts of the island fall within lava hazard zones, steep slopes, tsunami inundation areas, and FEMA flood zones. These can affect insurance availability, financing, and the ability to permit improvements. Screen hazard maps early and understand cost and risk impacts.
Records and TMKs
The state Bureau of Conveyances or the Land Court records CPR declarations and maps. After recordation and county processing, CPR units often receive separate TMKs for tax purposes. Confirm TMKs and verify tax status with the Hawaii County Real Property Tax Office.
Due diligence checklist for investors
Pre-offer or pre-contract
- Recorded documents: Obtain the condominium declaration, map/plan, and bylaws. Confirm unit boundaries, common elements, percentage interests, voting rights, and any developer rights.
- What is being conveyed: Verify that the seller has authority to sell the specific unit and that the deed description matches the recorded plan.
- Title and insurance: Order a title search for liens, easements, developer mortgages, and encumbrances affecting both the unit and common elements. Confirm a title insurance commitment is available.
- TMK and taxes: Check whether the county has created separate TMKs for each CPR unit and review the current tax classification.
- Zoning and use: Confirm allowed uses, density, minimum lot size, and any variances or special permits through the Hawaii County Planning Department.
- Permits and COs: Collect building permits and final certificates of occupancy for any existing improvements. Missing COs are a financing and resale red flag.
- Utilities and access: Verify water source, wastewater approvals, and road access. Review easements for ingress, egress, and utilities. Do not assume hookup rights.
- Hazard screening: Review FEMA flood maps, lava hazard zones, tsunami inundation maps, and any shoreline setback or SMA triggers.
- Environmental constraints: Check whether any Environmental Assessment or EIS is required. Ask about conservation district restrictions or known contamination.
- Association health: Request the association budget, recent financials, insurance policies, meeting minutes, and any reserve study. Look for adequate reserves and a clear assessment history.
- Transfer and resale limits: Review any right of first refusal, rental restrictions, lease limitations, and buyer approval processes that could narrow your buyer pool.
- Lender acceptance: Speak with lenders familiar with Hawaii CPRs to confirm the availability of conventional or portfolio loans and any project review requirements.
- Survey and boundaries: Confirm that as-built conditions match the recorded condominium plan. When in doubt, engage a licensed surveyor.
Post-contract and pre-closing
- Title policy: Confirm that the title policy will insure the specific conveyance free of unacceptable exceptions.
- Permits and approvals: Verify that permits needed for your planned use are valid and transferable.
- Developer transition: Confirm that developer controls are properly documented and that any developer liens will be cleared at closing.
- Infrastructure commitments: If relying on water meters, roads, or similar infrastructure, secure written commitments or recorded covenants that obligate delivery and maintenance.
Exit strategy and financing
Resale marketability
Restrictions that limit rentals or uses can shrink your buyer pool. Short-term rental bans are common in Hawaii and can materially impact value. Lender and insurer willingness to work with the CPR will also influence how quickly and at what price you can resell.
Financing and project reviews
Many lenders and government-backed programs apply project-level requirements to condominiums. If the CPR’s governing documents, insurance, or litigation posture do not meet those standards, buyers can lose financing options. This directly affects marketability.
Association risk
Weak reserves, frequent special assessments, or a history of collection problems introduce risk. Associations have lien and foreclosure rights that can impact title and exit timing. Review budgets and minutes in detail.
Conversion pitfalls
Treat CPR-to-fee conversion as complex. It generally requires new legal steps and approvals. Do not plan your exit around an easy conversion to fee simple lots.
Red flags we watch for
- Missing building permits or certificates of occupancy for existing improvements.
- Broad developer powers in the declaration that extend control and limit sales.
- No reserves and recurring special assessments in the association budget.
- Developer mortgages, construction liens, or easements that reduce usable area.
- Uncertain water service or no committed county water meters where needed.
- Location in high lava hazard zones, conservation districts, or SMA areas without proper permits.
- Restrictions on rentals that conflict with your income strategy.
- Early lender rejections during project review.
How we help Big Island investors
You want clarity, speed, and a clean exit. Our team pairs local, place-based knowledge with a clear process to help you buy right and sell with confidence when the time comes.
Here is how we support you:
- Ground truth on CPRs: We explain how state CPR law intersects with Hawaii County rules so you can structure offers wisely.
- Practical due diligence: We help coordinate title work, recorded document reviews, and third-party checks for zoning, permits, utilities, and hazards.
- Lender-aligned strategy: We engage lenders who understand CPRs on the Big Island and guide you through project eligibility factors that affect financing.
- Resale planning: When it is time to sell, we use in-house staging, professional photography, and a marketing-first presentation to reach a wider buyer pool, supported by Compass distribution.
- Multilingual service: If you or your partners prefer Mandarin or Japanese, our team can communicate and coordinate in-language.
Ready to evaluate a CPR opportunity or pressure-test a parcel’s exit options? Reach out for a clear plan that fits your goals. Start Your Island Real Estate Experience with Unknown Company.
FAQs
What is a CPR lot in Hawaii County?
- A CPR lot is a condominium unit created under Hawaii’s condominium law. It is defined by a recorded declaration and map and may have separate TMK and title records once processed.
How does a CPR differ from a subdivision on the Big Island?
- A CPR is a state law process that creates condo units and common elements. A subdivision is a county process that creates new fee simple lots. CPRs still must meet county zoning and infrastructure rules.
Can I assume county water and road acceptance for a CPR unit?
- No. A CPR does not grant automatic rights to county water, sewer, or county-maintained roads. You must verify actual service availability and any conditions for hookup.
Are short-term rentals allowed in CPR units in Hawaii County?
- It depends on zoning and the CPR’s governing documents. Many projects limit or prohibit short-term rentals, which can affect income and resale.
What hazards should I check before buying a CPR unit on the Big Island?
- Review lava hazard zones, FEMA flood zones, tsunami inundation maps, and any shoreline setbacks or SMA requirements. These can affect insurance, financing, and permits.
Can a CPR be converted into fee simple lots later?
- Conversion is complex and may require additional legal steps and county approvals. Do not plan your exit on an easy conversion path.
