Kauai Dreams Realty

Enter any search term in this field:

CPR Developer Sales in Hawaii

When creating a CPR there are a few things the developer needs to do before selling the property for the first time. Refer to my previous blog for the definition of a CPR. These legal requirements need to be completed in order to sell. A developer is a person who develops a real estate condominium project. Here are the requirements for an initial sale of a Condo Property Regime (CPR). An initial sale differs from a re-sale of a CPR.

  1. Registering the Condo project with the Real Estate Commission and obtaining an effective date for a developer’s public report. A property cannot be offered “for sale” until the project is registered with the Real Estate Commission and an effective date gets issued for the public report.
  2. Developer’s Public Report which is like a disclosure of the Condo project. There is a list of details that a developers public report must contain. Please email me if you would like a copy of the list. The effective date set by Real Estate Commission is not meant for approving or rejecting the developer’s Public Report it is intended to make sure there is proper disclosure and no misrepresentation on the report.
    1. When selling an initial CPR the seller has to deliver the buyer their public report. The buyers legally have 30 days after receiving the public report to cancel their offer.
  3. Residential units that were occupied 5+ years must include a statement by a Hawaii Licensed architect or engineer on describing the current condition of the property and a list of any violations of building code.
  4. Completion Deadline if a sales contract is signed before the completion of structure the developer must specify a completion date. This date should be in the sales contract and purchaser has the right to cancel the sales contract if the construction is not complete after the completion date or extension if any.
    1. If a sales contract is written up before completion the developer is allowed to use the purchasers earnest deposit money towards the completion of the structure.

Notice of Completion- Another important note on selling an initial CPR is the notice of completion in the newspaper. This is required by the escrow company and is meant to protect the escrow company and buyer. This is important and could hold up a sale. The developer must go to the local newspaper company on Kauai it is the Garden Island newspaper. The Garden Island newspaper must then publish the notice of completion in the newspaper 2 times. This gives notice to the contractor that the house is complete and they have 45 days from the publication notice to collect any unpaid money from the developer. This could hold up a potential sale if escrow needs another 45 days to close.

Kawaihau Road

 

This home just sold as a developer sale and first time CPR on 10/9/2015. Its great to own newly built construction! The developer is now in the process of building & selling the other CPR lot right behind this property. This home is located in Kapaa to see more information on the back lot for sale click here.

  • This is a brief summary and should not be substituted for legal/Realtor advice on a specific property.

 

 

Previous Article Next Article