Frequently Asked Questions
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TRUST & CONTINUITY
What happens if Franz becomes incapacitated or dies before I get title to my lot?
All purchase agreements include succession clauses. The property management team is legally bound to honor all contracts. Title transfer will occur in January 2027 regardless of Franz's health status.
Why have there been zero sales until now?
Franz was not ready. He wanted the infrastructure in place before talking to people. The infrastructure is now built, so this is the official launch.
What about the 26-year gap between buying Marenal in 2000 and launching it in 2026?
In 2004, Franz bought another farm where he raised beef cattle. His businesses in the USA did not permit a permanent move to Costa Rica for many reasons. He sold the ranch in 2022 and used the proceeds to fund Marenal's development. Franz moved here permanently in 2024
How is my deposit protected?
The $10,000 escrow deposit is held by our attorneys' third-party Costa Rican escrow company, not by Franz. During the 30-day due diligence period, you can walk away for any reason and get your full deposit back.
What if I need to exit after paying $75,000 but before the title is transferred?
The buyback clause gives Franz or the MPA the first right of refusal. You have the right to sell your interest to another party with the approval of Franz or the MPA if the new buyer meets our compatibility requirements. Please note that they have the option, but not the obligation, to buy you out. This clause protects the cohesiveness and the purpose of our community.
What legal recourse do I have if something goes wrong?
You are protected by Costa Rican property law, have escrow protections, and contract clauses covering succession and buyback. Hire a Costa Rican attorney during due diligence to review all documents and ensure you understand your legal position.​​​​​
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INFRASTRUCTURE & TIMELINE
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What is actually built right now?
Franz's residence (occupied 2024), property manager's house, guest cottage, 3-bedroom home (move-in ready), deep well (operational), fiber optic internet (Phase I operational), working farm, graded community roads, 2 security gates. The community social center and the pool are under construction.
When will the social area and the pool be finished?
We anticipate completion in the second half of 2026.
How reliable is the water supply?
Our deep well is operational, with a capacity for 100 homes. Our water is treated without chemicals. We are not dependent on municipal water. Our Water quality meets or exceeds Costa Rican standards.
How fast is the internet?
Fiber-optic internet is installed and operational in Phase I. Gigabit-speed fiber-optic internet is suitable for remote work, streaming, and daily use.
What permits are in place?
Marenal has all the necessary development permits. The property is surveyed, and all parcels have been submitted to the National Registry. Each lot owner is responsible for obtaining building permits for their own property. Be advised that Costa Rican permitting timelines can vary.
When can I start building?
From the date of signing the Purchase & Sale Agreement, you can begin construction planning and permitting. You do not need to wait for the title transfer in January 2027 to start working with architects and contractors.
What is our development timeline?
We expect to have all properties sold within 36 months. and should see some residences under construction in 2027. Franz is committed to completing and upgrading our infrastructure with the guidance of the General Council of MPA.
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PIONEER REALITY
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What do the first 7 founding partners actually experience?
You will be on a property with 4 other occupied lots. The immediate neighborhood is limited. The Community Social Center is under construction. Governance structures are being finalized and will be completed before the MPA is activated. You can be a contributing pioneer.
How isolated is the property?
Nuevo Arenal is only 5 minutes away. The town offers all basic services our community members may need, including grocery stores, retail shops, hardware stores, a gas station, many restaurants, legal services, pharmacies, limited medical services, churches, a branch of the National Bank of Costa Rica, and a vibrant expat community.
Tilaran, our county seat, is 30 minutes away. Liberia, the Capital of Guanacaste, and the international airport are only 90 minutes from Arenal. Some Pacific beaches can be reached in 2 hours. We are less than one hour from the famous hot springs and other tourist attractions.
Do I really need a 4x4 vehicle?
Yes. Most public national roads are paved. Many municipal roads are graded dirt roads. Our agricultural easements are graded, and 'lastre' covered. They are maintained by us, but have steep inclines in parts. This is highland terrain. A two-wheel drive sedan will not handle it reliably.
How much interaction will I have with Franz?
Franz lives on-site full-time. All partners can interact with him directly during visits, construction planning, and actual construction. He, and all our team members, are here to serve you. If you want zero interaction, that is your choice as well.
What if I don't get along with the other founding partners?
Sociocratic governance is designed to handle disagreement through consent-based decision-making and internal arbitration. If conflicts cannot be resolved, you may sell your property as per the buyback clause.
MPA & COMMERCIAL PROPERTY
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How does the MPA share structure work?
The MPA is created as a Sociedad Limitada (SRL). It uses quotas rather than shares and is limited to 20 members. This explains the need for a separate SRL for each phase. Both MPA's will have the same structure and bylaws. Both will be managed by the same General Council (GC) of our Sociocracy and its sub circles.
Phase 1 consists of 11 partners. Each partner will own 1 quota. Franz will have 1 quota; his son Xavier and daughter Silja 1, and Ariana Ugalde, Franz's long-term partner and the manager of GLP, has 1; and the 8 founding partners will have the remaining quotas. The MPA becomes active once all 11 quotas have been distributed and the General Council members have been chosen.
Phase 2 contains 21 lots, or up to 21 partners, each holding 1 quota. Every property purchaser will be a partner in the MPA, which will be managed by the same General Council established for Phase 1.
What power does the MPA have?
The MPA controls all governance decisions: property maintenance, roads, security, utilities, pool operations, farm operations, budget, monthly fees, new lot development timing, and commercial property decisions.
When does the commercial property transfer to the MPA?
When 22 lots have been sold, and there are 22 quota holders in MPA, the 4 blocks of commercial properties, which are held in escrow by our attorney, will be transferred, and each partner will own 1/32 of the commercial properties. The General Council of MPA will assume management responsibility, which includes determining the best uses for the properties and their disposition.
What if Marenal never sells 22 lots in Phase 1 and Phase 2?
The commercial properties will remain with Franz and his heirs until this number of sales has been reached. The risk that our growth does not reach this level is small, and the reward is substantial. It is estimated that the current value is between $950 K and $1,050 K, a sum that is sure to rise over time as our development progresses.
What is the purpose of co-housing?
Our community will function better when the partners share their talents, and sometimes belongings, with the community neighbors. We call this cooperation without coercion!
PRACTICAL LOGISTICS​
Can I get Costa Rica residency through this purchase?
Yes, but property ownership alone does not always guarantee residency, unless it meets certain government requirements. You should consult our legal team member, Sharon Murillo at Muralegal, to learn more.
How much does it cost to build a house?
You should budget between $ 150,000 and $300,000+, depending on size, finishes, and design complexity. Costa Rican construction costs vary. Get quotes from local contractors during your planning phase.
Are there specific features every home must have?
Yes. All our homes are subject to the electrical services provided by ICE, the national institution. Since they are not always reliable, we have elected to become as self-supporting as possible under the law. We therefore recommend that all homes have a battery backup system and recharging provisions to protect us from power interruptions or power loss. The recharge system can be grid-connected or through solar panels or vertical windmills that do not generate noise. We have a supplier of such systems, but each homeowner can choose which supplier to use. For our internet connections, we recommend satellite over fiber-optic for Phase 2. Being ecologically sensitive requires us to regulate our rainwater flow. Therefore, all homes must have a cistern to manage rainwater runoff from our roofs.
Can I rent out my house on my lot?
The MPA will decide on rental policies once it is formed. Currently, there is no restriction, but the MPA may change these policies through consent-based decision-making. Raise this issue during your initial meeting with Franz.
What are the monthly fees?
The $100/month base maintenance fee covers road maintenance, security, common areas, and property management. Once the MPA forms, the MPA sets the budget and may adjust fees based on actual costs.
What about Costa Rican property taxes?
Costa Rican property taxes apply. They are based on assessed value. Budget for annual property taxes as part of your ownership costs. Our attorney can provide specifics during due diligence.
PHILOSOPHY & COMMUNITY
What if I'm not familiar with Voluntaryism and Sociocracy?
Familiarity with these advanced forms of governance is not required to join. However, if you are not interested in learning about voluntaryism, consent-based governance, and voluntary cooperation, Marenal may not be for you.
Do you have written rules of conduct at Marenal?
Franz has promulgated simple Guidelines, Rules, and Regulations (the GRRs) that are currently in force. Every partner has accepted them as part of the purchase. When the MPA is active, it may change or adapt the operating rules through our consent-based process.
How do you handle disagreements?
We try to solve any conflict through internal arbitration and communication. If a proposed change cannot gain consent after discussion and modification, it does not move forward. The status quo remains. If there is a violation of the GRRs, the partner will be notified and asked to remedy the violation. If the violation is not corrected and continues, the partner will be asked by our legal circle members to explain his reasons of the violation, and for his refusal to remedy it. If he deliberately continues to violate, the community can invoke the buyback option as provided for in the purchase contract.
Can I opt out of MPA participation?
No. If you own a lot, you are part of the MPA. You can choose not to participate in day-to-day discussions or not to join an operating circle, but you cannot ignore MPAs' decisions made through a consent-based process. If you have principled objections to decisions, you have the power to block them.
Still Have Questions?​
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If your question is not answered here, contact Franz directly. The best way to get answers is to visit the property and discuss your specific situation with Franz and the team.
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Ready to get started? Contact us today: hello@marenal.com