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Legal Structure and Financing

 WHY SHARE OWNERSHIP
INSTEAD OF A CONDOMINIUM?

CURRENT

The Purchaser becomes a shareholder in the corporation which owns the property. The shares entitle the owner /shareholder to the " right of exclusive use in perpetuity" of a specific house and the common element property. The administration and operation of the corporation is as a condominium in North America . A Board of Directors is elected from the shareholders and hires a property management company to execute the day-to-day management. "Exclusive use" property is clearly defined as well as is common element property. Monthly common element fees are payable and Resident association rules and regulations which are commonly found in condominiums in North American are clearly stated. The legal documentation is modeled on Canadian / American condominium laws modified to fit Costa Rican law.

OWNERSHIP ALLOCATION and COMMON ELEMENT FEES

Each house has been allocated a set number of voting shares out of a possible 200 shares. These shares can be re-sold or gifted without restriction.

See Matrix: Current Status. Lease / Purchase

House
House Area in
2008Mo. CommonExp.-Op.
Mo. Prop.Mgt. Fee
Total Mo.CEF
PropertyTaxes
#
Sq. Meters
101
177
$165
$100
$265
$277
102
177
$165
$100
$265
$277
103
91
$85
$100
$185
$142
104
99
$92
$100
$192
$155
105
85
$79
$100
$179
$133
106 A
117
$109
$100
$209
$183
106 B
117
$109
$100
$209
$183
106 C
113
$105
$100
$205
$177
106 D
113
$105
$100
$205
$177
107
158
$147
$100
$247
$247
108
158
$147
$100
$247
$247
109
140
$130
$100
$230
$219
110
120
$112
$100
$212
$188
111
160
$149
$100
$249
$250
112
120
$112
$100
$212
$188
113
121
$113
$100
$213
$189
114
120
$112
$100
$212
$188
115
125
$116
$100
$216
$196
116
120
$112
$100
$212
$188
117
122
$113
$100
$213
$191
118
122
$113
$100
$213
$191
119
122
$113
$100
$213
$191
120
122
$113
$100
$213
$191
121
131
$122
$100
$222
$205
122
169
$157
$100
$257
$264
123
140
$130
$100
$230
$219
124
61
$57
$100
$157
$95
125
61
$57
$100
$157
$95
126
35
$33
$100
$133
$55
Doneste
3516
$3,270
$5,500

May 1, 2006

Note 1:
While the Management Fee portion of the common element fee is expected to remain fixed over the life of the mgt. contract, the Variable Cost Per Share is expected to change. For example, the Property Tax element is based on the current annual assessment of approximately $900. When the property is reassessed due to additional buildings, this expense is expected to increase and to be apportioned according to share ownership.

Note 2:
For absentee owner/investors who wish their property to be leased and managed on their behalf, an additional charge will be applied between Residencias Property Management and the share holder.

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