I received so many calls inquiring about condominiumizing from my last article that I thought I would talk more about it to answer both buyers’ and sellers’ questions. Just like condominium complexes such as ‘Iao Parkside, individual house structures on one parcel of land can also become condominiums. Sleepy Hollow, a neighborhood of 11 homes in Kihei, is a condominium; there are similar neighborhoods throughout the island.
A reputable attorney on Maui who specializes in converting properties to condominiums took time to fill me in on some of the details of this very complex process. There is so much to this topic that I will be devoting two weeks to it.
Land owners may condominiumize their property if it meets certain requirements. Condominiumizing is not subdividing; the parcel of land that is being converted to a condo remains a single lot for all zoning and permit laws. Condominium conversion does not increase density or change land-use or zoning-use restrictions. In other words, a two-acre, agricultural-zoned property that currently allows one house and one accessory dwelling up to 1,000 square feet would remain the same after condominiumizing. Once the property is converted and the structures are sold separately, the 1,000-square-foot accessory dwelling could not add square footage. It must remain 1,000 square feet, or whatever size the zoning law requires. In addition, agricultural-zoned land will still be required to complete a farm plan to the county.
In addition, the entire property needs to be in compliance with all laws and regulations. All homes need proper permits, need to be clean with no illegal activity. Illegal remodels such as additional kitchens or baths are prohibited. The homes must also be in compliance with the new EPA regulations regarding septic tanks and cesspools.
Depending on the age of the home, the condominium process requires you to obtain a miscellaneous inspection from the county. This will involve the county coming to your home to inspect it to make sure you are in compliance with codes, permits, zoning, etc.
Next week I will discuss the pros and cons of condominiumizing.
Chris Bakeman, broker, has been a realtor since 1997, selling in both buyers’ and sellers’ markets. Now with her own company, she offers an affordable way to sell your home starting as low as $4,000 full service on the MLS. Contact Chris Bakeman Realty LLC at 283-6126 or www.chrisbakeman.com.