Curious why so many North Kohala land listings say “CPR” and what that means for you as a buyer in Kapaau? You are not alone. CPRs can offer great opportunities, but they come with unique rules, shared responsibilities, and due diligence items you should not skip. In this guide, you will learn what CPR means in Hawaiʻi, how these properties differ from conventional subdivisions, and the steps to verify access, water, septic, financing, and insurance before you make an offer. Let’s dive in.
What CPR Means in Hawaiʻi
A quick definition
In Hawaiʻi real estate, “CPR” refers to a condominium property regime that divides a single parcel into separately owned units or lots plus shared or common elements. You own your specific unit or lot, and you share responsibility for common areas such as private roads, driveways, drainage, or shared water systems. CPRs are used for vertical condos and for horizontal lot splits that create “CPR lots.”
Why sellers use CPRs
CPRs are often used to create multiple fee-simple lots without a full county subdivision in certain scenarios. They can also formalize shared access or maintenance when private infrastructure exists. In rural settings like North Kohala, CPRs are common for dividing larger properties into smaller buildable lots where owners share roads or utilities.
How CPR Lots Differ From Subdivisions
Access and infrastructure
Public roads are not guaranteed in a CPR. Access may be by a private road or shared driveway that owners must maintain. Drainage features and, in some cases, water systems can also be private. You should verify whether access is public or private and what maintenance obligations apply now and in the future.
Governance and rules
CPRs are governed by recorded documents such as declarations, CC&Rs, and sometimes bylaws or rules. These spell out voting procedures, owner obligations, cost sharing, and enforcement. Governance ranges from light to more formal depending on the project, so you should review the documents to understand how decisions are made and how assessments are set.
Permits and building rights
A CPR does not automatically guarantee separate utilities or building approvals for each lot. Your ability to build depends on county zoning, water availability, wastewater requirements, and any rules in the CPR declaration. Some lots need additional approvals for septic, water sources, or driveway permits, and existing structures should be confirmed as properly permitted.
Mapping and taxes
CPR lots typically receive their own tax map keys or parcel identifiers after recording, but timing can vary. Property tax billing and assessments may shift after the county processes the change. Expect some administrative lag and plan accordingly if you are budgeting taxes for the first year.
Key Risks To Check in North Kohala
Title and recorded documents
Request and review the recorded CPR declaration or master deed, all supplements or amendments, plats, surveys, and each unit’s legal description. Confirm easements and rights-of-way that grant access and utility corridors. Ask for any association budgets, reserve information, meeting minutes, and litigation disclosures. Obtain a current title search from a Hawaiʻi title company and check for liens or unpaid assessments.
Road access and maintenance
Identify whether your access is via a county road or a private road. If private, look for the recorded maintenance agreement and understand the cost-sharing formula, reserve status, and repair standards. For rural Kohala, erosion and drainage management are common concerns, so you may want a contractor’s opinion on road condition and future costs.
Water, utilities, and wastewater in Kapaau
In North Kohala and Kapaau, many properties rely on private water catchments, shared systems, drilled wells, or county water where available. Septic systems are common, and cesspools may still exist in some areas. Verify the water source, meter status, quality, and capacity for domestic use and irrigation. Confirm the wastewater solution, whether a septic permit exists, and if upgrades will be required for sale or future building. Also confirm electric, phone, and internet availability and any necessary easement crossings.
Permits and entitlements
Check that all existing structures were properly permitted and, where applicable, have certificates of occupancy. If you plan further development, verify county zoning, minimum lot sizes, setbacks, and any shoreline or special district overlays. For agricultural or conservation designations, understand use limitations and farm dwelling rules before you invest.
Insurance and hazards
Kohala’s hazards can include wind or hurricane risk, heavy rainfall with localized flooding or erosion, and coastal exposure for shoreline parcels. Review FEMA flood maps and consider flood insurance if applicable. If roads or water systems are private, confirm how liability insurance is handled and whether the association or owners are responsible for coverage.
Financial health and assessments
If there is an association, examine current assessments, reserve funding, and any history of special assessments or debts. For CPRs without formal associations, understand what triggers shared costs and how they are allocated. Ambiguous obligations or underfunded private infrastructure can affect long-term costs and resale.
Financing, Title, Insurance, and Resale
What lenders look for
Some lenders are cautious with CPR lots when private roads, shared water systems, or informal governance raise risk. You may see higher down payment requirements, fewer lender choices, or the need for local portfolio lenders. VA and FHA can be more restrictive for certain condominium or CPR structures, so speak with lenders early to confirm the loanability of a specific lot.
Title insurance and surveys
Title insurance is highly recommended. Check for exceptions tied to the CPR declaration, shared access, and utility easements. A current survey or boundary work may be required to secure endorsements or clear exceptions. Work with a local title company experienced with Big Island CPRs.
Homeowners insurance
Confirm availability and cost for homeowners coverage, including wind or hurricane coverage when needed. For coastal properties, consider long-term exposure to erosion and sea-level rise. If you are responsible for private road or water system liability, verify how that coverage is arranged and priced.
Resale outlook
In rural North Kohala, CPR lots can appeal to buyers seeking privacy or agricultural uses, but resale liquidity may be lower than in conventional subdivisions. Clear documentation, stable infrastructure, and transparent cost sharing improve buyer confidence and marketability. Poorly defined access or underfunded shared systems can reduce your future buyer pool.
Buyer Checklist: What To Verify
- Documents and title:
- Recorded CPR declaration or master deed, all amendments
- Plats, surveys, legal descriptions for each lot
- Easements, rights-of-way, and maintenance agreements
- Association documents, budgets, reserve info, minutes, and litigation disclosures
- Title report and title insurance commitment with required endorsements
- On-the-ground facts:
- Road type, condition, and who maintains it
- Water source, meter status, quality, and capacity
- Wastewater solution, septic permits, and compliance
- Electric and telecom access, including easement crossings
- FEMA flood zone, shoreline setbacks, and other hazard overlays
- Professional input:
- Local title company and real estate attorney for document review
- Surveyor if boundaries or plats are unclear
- Mortgage broker or lender to confirm financeability
- Insurance agent for wind, hurricane, flood, and liability coverage
- Contractors to inspect roads, drainage, water, and septic, with repair estimates
Simple Glossary
- CPR declaration or master deed: The recorded document that creates the CPR and sets rights and duties for owners.
- CC&Rs: Covenants, conditions, and restrictions that limit uses and set standards.
- Plat/survey: Maps that show lot boundaries, common elements, and easements.
- Easement: A recorded right to use another parcel for access or utilities.
- TMK: Hawaiʻi’s tax map key, the parcel identifier used by the county.
Who To Call Locally
- Hawaiʻi County Planning Department for zoning and subdivision questions.
- Hawaiʻi County Real Property Tax Division for TMK and assessment questions.
- Department of Public Works and water/wastewater divisions for road acceptance and utility connections.
- Local title companies and the Bureau of Conveyances or County Recorder for recorded documents.
- Licensed Big Island real estate brokers, land-use or real estate attorneys, and local lenders familiar with rural Hawaiʻi properties.
Next Steps
- Gather the recorded CPR declaration, plats, surveys, easements, association documents, permits, and a current title report.
- Confirm road access, water source, wastewater solution, and hazard overlays on site.
- Talk with a local lender about loan options for the specific CPR lot.
- Ask an insurance agent to price homeowners, flood if needed, and any liability for private infrastructure.
- Bring in contractors to estimate near-term costs for road, drainage, water system, or septic work.
When you are ready to explore CPR lots in Kapaau or across North Kohala, connect with a local advisor who knows the nuances and has trusted relationships with lenders, title companies, and inspectors. If you would like warm, knowledgeable guidance from a boutique West Hawaiʻi brokerage, reach out to Kona Pacific Realty, LLC.
FAQs
What does a CPR property mean in Hawaiʻi?
- A CPR divides one parcel into separately owned units or lots with shared common elements and recorded rules for governance and maintenance.
Are CPR roads public or private in Kapaau?
- Many CPR roads are private with owner maintenance obligations, so verify access type, recorded agreements, and cost-sharing before you buy.
Can I build freely on a CPR lot?
- Not automatically; your rights depend on zoning, permits, water availability, wastewater rules, and any restrictions in the CPR declaration.
Is financing harder for CPR lots?
- It can be; some lenders are cautious with shared infrastructure, so consult local lenders early and expect that down payments or options may vary.
Who pays for private road or water system upkeep?
- Cost sharing is defined in recorded documents or maintenance agreements; check budgets, reserves, and how special assessments are handled.
Will my property taxes change after a CPR is recorded?
- They may; TMKs and assessments can be adjusted after recording, and timing varies with county processing.
