Often when you are looking at homes for sale on Maui you will see an acronym, “CPR.” If you are searching for home options in Launiupoko, located in West Maui, you will see a lot of CPR options.
What is a CPR?
CPR is short for Condominium Project Regime. This is basically a condominium development, except the only common element in a residential CPR, in most cases, is a single lot line. It is an acceptable way to split your property when subdividing is not allowed.
Doing a CPR offers a land/home owner the option to sell off a portion of their property. Agriculture land, like that of Launiupoko, is a great option for a CPR property. Agriculture property allows for a main residential dwelling (an Ohana/cottage that cannot exceed 1000 sq.ft.), a farm dwelling or storage building, and a garage. Often you will see a pool house or cabana added as well. You don’t often see monthly dues unless there is a surrounding HOA.
Ohanas in Launiupoko can sell between $900K to over $2 Million. Not bad for one of the more desirable areas close to Lahaina. The demand for homes and cottages in Launiupoko is mostly due to the vast ocean views, one acre or more of land, and the potential to do short term rentals in your home. Keep in mind, if your neighboring CPR with whom you share the common lot line with (which could be more than one owner) does not want you to operate short a term rental, you cannot. You may want to do your due diligence prior to taking the risk on this type of purchase. Short term rental approval is not guaranteed and there are many hurdles to overcome before you can get approval.
A CPR is a great option if you are considering a home purchase on Maui and do not require a larger home. Make sure your lender is prepared to lend on a CPR before you start looking. One common challenge for a lender is if the two CPR neighbors share a cesspool; many do not consider this acceptable in most cases. A CPR may not offer all the supporting documents most lenders require like an RR105C. An RR105C is a condo disclosure about the complex. The purchase will be like a traditional residential purchase in most cases, but make sure to share the CPR fact to your lender for pre-underwriter screening.
Do you have more questions about a CPR, just ask me! I just assisted my client with a CPR home purchase in Launiupoko.