Could the New Condo Law Affect You as a CPR Owner on Kauai?

Currently, there is a new law in effect called act 181 that could affect CPR owners. This law was created with the intent to protect consumers when it comes to the Public Report. Condos on Kauai become prevalent in the 1980s and larger land parcels were further divided under the HRS 514A Condominium Law. Any CPR created prior to 2006 was subject to HRS 514A. After 2006, the law was amended and all condos were subject to HRS 514B. The reason for the new bill was to allow for "spatial units" and to change the minimum percentage needed to amend the Declaration and Bylaws. It also allows for units to be sold while an amended public report was being prepared which the HRS 514A did not allow.

The new Act 181 bill that was recently passed will eliminate the current HRS 514A in its entirety starting 1/1/2019. This new law could affect you if you are an owner of a condominium that was created prior to 2006 in which the original developer of the CPR still owns an interest.

Questions to ask yourself if you own a CPR in Hawaii:

• Was my CPR created prior to 2006?
• If so does the original developer still own an interest in the CPR?

If the answer is yes to both of those questions then you need to find out if your public report is current.

If you own a CPR under HRS 514A and the original developer still owns an interest, you need to be sure that the public report has no expiration or is current. If it is expired, you have until 1/1/2019 to make it current or your CPR will no longer exist.

This would mean that you would need to create a CPR all over again. If you own a CPR that is subject to this new act 181 and you need to have your public report updated you will want to call an attorney right away to begin working on it for you. This process could take about 4 months so you would want to start the process before August.

Consider me your ultimate real estate resource. If you need to find out how to check your public report and see if it is current you can contact me today. Contact me if you need information on an attorney to call. If you are considering selling your CPR unit contact me today.