Understanding Association Documents: Your Guide to Navigating M-1 Docs in Hawaii

Aloha, Future Homeowners!


Embarking on the journey to purchase a property in Hawaii brings with it the exciting task of navigating through various association documents, commonly known as M-1 Docs. While this may seem daunting at first, understanding the role and importance of each document will empower you to make informed decisions tailored to your unique needs and desires.


Here's a simplified guide to what you'll find in these documents and how they pertain to your home-buying adventure:

 Budget and Reserve

- Financial Health Check: Ensure the property is well-budgeted and possesses sufficient funds for sustainability. This insight is crucial to avoid unexpected assessments or financial pitfalls.

- Cash Reserves vs. HOA Delinquencies: A healthy balance sheet where cash reserves surpass any HOA delinquencies signals a financially stable community.


 Bylaws and Declaration

- Governance and Operations: Discover who's steering the ship—learn about the board members, their decision-making processes, and the overarching goals of the complex. Though they may be challenging to read, these documents are the heart of what the complex stands for.


 Approved Board Minutes

- Insider's Look: Gain access to the latest discussions on unfinished business, upcoming projects, and potential issues, including maintenance and litigation. These minutes are a window into the community's future.


 Summary of Insurance

- Protection for Common Spaces: Understand the master insurance policy details, including coverage extents and specific insured areas. It's essential for lenders and may highlight the need for additional flood insurance coverage.


 House Rules (And Amendments)

- Everyday Living Guidelines: Familiarize yourself with the community's lifestyle rules—pets, parking, rentals, and more. Knowing these can help you envision your life in the community.


 RR105c (Project Information Form)

- Lender's Lens: Offers a snapshot of the condo's health, litigation status, and warrantability. This form also sheds light on ownership distributions, which can impact financing and your purchasing strategy.


 CC&Rs (Covenants, Conditions, and Restrictions)

- Community Framework: These rules aim to protect and enhance property values. Understanding CC&Rs is crucial as violations can lead to fines or legal action.


 CPR (Condominium Property Regime / Horizontal Property Regime)

- Structural Breakdown: Delve into the specifics of unit layouts, common areas, and property delineations, offering a clear picture of your potential new home and its surroundings.


Embarking Together: No document is more important than another; each plays a pivotal role depending on your specific needs. Our team is here to help you navigate these waters, ensuring you're informed, confident, and excited about your real estate adventure.