Q: What is a condominium project?
A: A condominium project is governed by Chapter 514B of the Hawaii Revised Statutes.A condominium is a real estate project located on one or more zoning lots. The ownership of which is divided into:apartment units, which are separately owned;common elements which are owned and used by the unit owners; andlimited common elements, such as a yard or other area, which are made available for use by some, but not all, of the apartment unit owners.
Condominium projects vary greatly. Some may be high rise structures in one or more buildings, and some may consist of as few as two detached homes or other structures located on a single small parcel of land.
Some projects do not have structures - they have “spatial” units.A Project is formed by recording of the Declaration of Condominium Property Regime and a condominium map.In order to offer the apartment units for sale, a Developer of a project must obtain a Public Report, an effective date of which is issued by the Real Estate Commission.
One can only apply for a public report after receipt of the county letter indicating that the project conforms with building and zoning laws. Once filed for, the public report is usually issued within three to four months.
Q: What information will you need from a client looking to form a condominium project?
A: While projects differ significantly, the following basic information is needed for us to form any condominium project and obtain a Public Report from the Real Estate Commission:
TITLE INFORMATION. An owner's title report, title insurance policy or other title document (such as deed) indicating that the developer is the owner and which describes the property on which the project will be located.
DRAWINGS FOR THE PROJECT. These consist of (a) Site Map (including parking spaces,) (b) floor plans for each type of apartment unit, and (c) exterior elevations of each building within the project. These may be prepared by a draftsman, but must be certified by a licensed architect or registered engineer.
INFORMATION ABOUT IMPROVEMENTS. As to existing improvements, we need their approximate date of construction, the net living area of each apartment unit and the area of nonliving areas, such as garages, carports, lanais, decks, etc.
SELLER'S BROKERS. Name of the broker, if any, who is retained to sell the Project, or indicate the owner will sell without a broker.
PARKING. Indicate on the Site Map the location of all parking stalls.
BUILDING RESTRICTIONS. Inform us of any special building restrictions to be imposed on the Project. (These may include, for example, set back requirements, height restrictions, architectural design criteria and use restrictions.
LETTER FROM COUNTY. If structures within the project are over one year old, provide us with a letter from county confirming that the structures within the property conform with zoning and building codes when they were built.
Q: What is the estimated schedule for forming a project and obtaining issuance of a public report?
A: A project can be formed as quickly as 30 days after we receive the required documents from our client.
For smaller projects, the time to form and obtain public report will usually be about four months. It is difficult to estimate for larger more complex projects.