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Squatters seldom have the "rights" to just take property as easily as the internet often seems to think they have. It very often takes years to assume those rights plus paying the taxes on it. And if it were so easy to do that it became such a common problem, it wouldn't be as big a meme as it currently is.
My question is: "Just how little are you paying attention to your personal property that you unaware of a many month's long building process taking place on your property?" Or is the property owner that stupid and has her ass that far up her own head?
I mean, I own several hundred acres of property, (farm land and forest), and a good chunk of it is 300 miles away. I KNOW what happens on that property. If someone tried to build anything on it without my knowledge or consent, I would know within a week of the start of the building and real hard pointed questions would be asked of the fools doing the building.
She doesn't reside in the state, and the state is Hawaii (an island). We can assume she also has no social connections there, at least none near the property. Do you expect her to be telepathic?
Her daughter lives there and was the one to recommend the property. That said I don't think you lose your rights by not checking your stuff regularly. This developer could have had that house up in a matter of months, Does not really need to be a long time.