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Questions and answers
These are the questions we are asked most often, answered as directly as we can. If yours is not here, get in touch.
Trust and continuity
Marenal is open to residents of all nations. We are international in our appeal and welcome member-partners regardless of origin, colour, race, religious beliefs or political affiliation, as long as they accept our philosophy and form of governance.
All purchase agreements include succession clauses. The property management team is legally bound to honor every contract, and title transfer occurs regardless of Franz’s health.
Franz was not ready. He wanted most of the infrastructure in place before talking to people. The infrastructure is now built, so this is the official launch.
In 2004 Franz bought another farm and raised beef cattle. His businesses in the USA did not permit a permanent move to Costa Rica at that time. He sold the ranch in 2022 and used the proceeds to fund Marenal’s development. He moved here permanently in 2024.
The 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.
The buyback clause gives Franz or the MPA a first right of refusal. You have the right to sell your interest to another party with the approval of Franz or the MPA, provided the new buyer meets our compatibility requirements. They have the option, but not the obligation, to buy you out. The clause protects the cohesiveness and purpose of the community.
You are protected by Costa Rican property law, by escrow protections, and by contract clauses covering succession and buyback. We recommend engaging your own Costa Rican attorney during due diligence to review all documents and confirm your legal position.
Infrastructure and timeline
A deep well with capacity for 100 homes, feeding every Phase One lot. Gigabit fiber optic internet. Graded lastre roads. Security gates on both phases. Three completed residences, including the home Franz lives in. The Amapola House, finished and furnished. A working farm producing tilapia, chickens, sheep and vegetables year round. The Community Social Club is under construction and completes before the end of 2026.
Before the end of 2026.
Our deep well is operational, with capacity for 100 homes. The water is treated without chemicals and we are not dependent on municipal water. Quality meets or exceeds Costa Rican standards.
Gigabit-speed fiber optic internet is installed and operational in Phase One, suitable for remote work, streaming and daily use. Phase Two will use satellite.
Marenal has all 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. Costa Rican permitting timelines can vary.
From the date you sign the Purchase and Sale Agreement you can begin construction planning and permitting. You do not need to wait for title transfer to start working with architects and contractors.
We expect all properties to be sold within 36 months, and to see residences under construction in 2027 in addition to those already built. Franz is committed to completing and upgrading the infrastructure with the guidance of the MPA General Council.
The reality of being first
Nuevo Arenal is 5 minutes away, with grocery stores, retail, hardware, a gas station, restaurants, legal services, pharmacies, limited medical services, churches, a branch of the National Bank of Costa Rica, and a vibrant expat community. Tilarán, the county seat, is 30 minutes. Liberia and its international airport are 90 minutes. San José airport is under 3 hours. The hot springs near La Fortuna are about an hour, and the Pacific beaches 2 hours.
Most public national roads are paved and many municipal roads are graded dirt. Our agricultural easements are graded and lastre covered, maintained by us, but steep in parts. This is highland terrain and a two-wheel drive sedan will not handle it reliably. We recommend four-wheel drive.
Franz and Ariana live on site full time, and all partners can deal with them directly during visits, planning and construction. Our whole team is here to serve you. If you want zero interaction, that is your choice as well.
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 under the buyback clause.
The MPA and the commercial property
The MPA is a Sociedad Limitada. It uses cuotas rather than shares and is limited to 50 members. It is managed by a General Council and its sub circles. What matters most is solidarity between partners, while each partner independently runs his own business and family life. Phase One consists of 11 partners, each owning 1 cuota. Franz has 1, his son Xavier 1, his daughter Silja 1, and Ariana Ugalde, Franz’s long-term manager of GLP, has 1. The MPA becomes active once all 11 cuotas are distributed and the General Council members are chosen.
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 22 lots have been sold and there are 22 cuota holders in the MPA, the 4 blocks of commercial property, held in escrow by our attorney, are transferred, and each partner owns 1/32 of them. The General Council assumes management responsibility, including determining their best use and disposition.
The commercial properties remain with Franz and his heirs until that number of sales is reached. We consider the risk of not reaching it small, and the reward substantial.
No. If you own a lot you are part of the MPA. You can choose not to take part in day-today discussions or to join an operating circle, but you cannot ignore decisions made through the consent-based process. If you hold a principled objection to a decision, you have the power to block it.
Practical logistics
Most likely, though property ownership alone does not always guarantee residency unless it meets certain government requirements. Our legal team can advise.
It depends on size, finishes and design complexity. We'll walk you through current building costs once you get in touch.
Yes. All homes are subject to the electrical services provided by ICE, the national power company. For Phase Two we have elected to be as self-supporting as the law allows, and recommend sun, wind and biogas with battery backup. In Phase One the system is grid connected. Fiber optic is installed in Phase One and Phase Two will use satellite. Every home has a septic system and rainwater collection tanks.
Part-time residents can rent their homes through GLP, our in-house agent. The MPA may change this policy if the partners wish.
A community fee covers road maintenance, security, common areas and general community property management. Once the MPA forms it sets the budget and may adjust fees based on actual costs.
Closing costs typically range from 3.5 to 4.5 percent of the purchase price. Generally included are property transfer tax at 1.5 percent, legal fees at 1 to 1.5 percent, registration and documentary stamps at 1 percent, and due diligence expenses, which vary.
There are several taxes and fees to be aware of. An annual property tax of 0.25 percent based on the value declared with the local municipality. A luxury home tax on home value, excluding land, above an annually adjusted threshold. And annual corporate taxes on active and inactive private corporations, approximately $250 and $110 respectively. In general, property taxes are more reasonable in Costa Rica, and many maintenance costs are more affordable here than in the USA, Canada or Europe.
Philosophy and community
Familiarity is not required to join. But if you are not interested in learning about voluntaryism, consent-based governance and voluntary cooperation, Marenal may not be for you.
Franz has promulgated simple Guidelines, Rules and Regulations, the GRRs, which are currently in force. Every partner accepts them as part of the purchase. We send them to you in full before any money goes into escrow, so you can review them with your own attorney and decide with the whole picture in front of you. When the MPA is active, it may change or adapt them through our consent-based process.
We try to resolve conflict through internal arbitration and communication. If there is a violation of the GRRs, the partner is notified and asked to remedy it. If the violation caused physical damage, the violator compensates for it. If the dispute is not settled to the satisfaction of both parties, the partner is asked to explain his refusal before the General Council. If the Council recommends a solution and the offender deliberately continues not to settle, the Council can invoke the buyback option provided for in the purchase contract. You will have read the GRRs in full before you commit, so nothing in them will come as a surprise.
The community functions better when partners share their talents, and sometimes tools, meals and belongings, with their neighbours. All of it voluntary. We call it cooperation without coercion.
Still have a question?
The best way to get answers is to see the property and talk it through with us. The first step is a virtual meeting.
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