For those of you in the final stages of reserving your lot and reviewing the Lot Option Contract, here are a few FAQs and a link to download the contract for your reference. If you have additional questions or suggestions to make this page more helpful, please let us know!
What is the process of purchasing a lot at Alegría?
We are currently pre-selling lots in our two premiere neighborhoods of Alegría Village, Los Altos and El Corazón. As we are still in the process of finalizing and registering each specific lot, our pricing is divided into categories per neighborhood, determined by size, views, topography, privacy, and overall vibe. We are offering these first lots at a significant discount per square meter to the price at which they’ll be listed when the lots are registered in 3-6 months.
Reserving a lot during our presale phase also gives you the best chance at getting the lot you love. Lot selection will be based on order of commitment, and your position will be determined by the order in which you sign the Lot Option Agreement and submit your deposit. Upon signing the Lot Option Agreement, you can either pay a 50% deposit of the category price (remainder due at closing), or pay upfront for a 10% discount on the category price.
How much will the lot prices go up over time?
The short answer is: lots will go up on average 25% from their initial presale prices.
The more detailed answer:
There are three phases of lot pricing for Alegría Village, which allow future residents and owners to balance acquisition cost and risk. The three phases are initial presales, presales beyond 30 lots, and post-permitting approvals / lot registration. Buyers who wish to support the realization of the community and who trust our team to overcome the inherent challenges in development receive a price incentive to commit early and put down a large deposit. Buyers who commit during this phase get to take part as the community comes together and be the first to select their lots once they are finalized.
Once 30 lots have been sold, the project will be either close to or fully funded to complete all development costs, therefore the risk to lot buyers is reduced. At this point there will be a small price increase (around 10%). At this point the project will still not be fully permitted, lots will still not have been legally separated so that title can immediately transfer to the new owners and much development will remain; therefore these buyers also enjoy a lower price for committing early.
Finally, once all permitting is in place and the lots have been legally registered, the lots will be priced individually instead of by categories (regardless of whether more or less than 30 lots have been sold). Lot buyers will know exactly what lot they are receiving and have full confidence that the project will soon be completed. Since the vast majority of the risk has now been mitigated, the lots will take on their final prices, which average about 15% higher than the prior round or 25% higher than the initial presale prices. At this point additional financing options will also be available through local banks for interested buyers.
The pricing approach rewards buyers for sharing in the risk of the project and helping to ensure that the lifestyle we are working so hard to create becomes a reality. We understand that different risk tolerances and economic realities will drive which phase is right for you and we are happy to assist you in the process of making that decision.
If I submit my deposit now to reserve my lot, what are the risks? How can I ensure that AlegrÍa will be the community as it is described?
We are currently in the process of permitting the project – changing the land zoning from agricultural to condominium, which will allow us to subdivide the property into smaller lots. The biggest risks in submitting your deposit now to reserve a lot is that (1) we won’t receive approval from SETENA subdivide as planned or (2) we won’t sell enough lots to fund the development of common buildings and infrastructure.
Let’s address both risks in full transparency:
The permitting process in Costa Rica is infamously long and bureaucratic (~1 year), but pretty straight-forward. Our partners are experienced developers in Costa Rica and have never had an issue with permits not being approved. We are about 9 months into the process and are making positive strides forward each week as we work with our case manager from SETENA (the Costa Rican permitting body). In the off-chance that we do not receive Condominium permits, we have a few options. One is that we could decide not to build the community as planned, in which case we would default on our contract and you would receive your deposit back in full. The other is that we would move forward with a different version of the masterplan within the regulation of agricultural zoning. This would mean fewer, larger lots in the middle of the community, and smaller lots along the public roads.
Please keep in mind that the “pre-sale” lot prices now are adjusted to consider this risk – prices will go up on all lots once we receive SETENA approval.
Yes, the way we structured our project is that our initial capital came from our investors, and that ongoing cash from lot sales will fund the remainder of the development and infrastructure. This does pose a risk to buyers in that we will be using the capital from deposits to fund construction. However, we are ensuring that development spend does not exceed the value in the collateral of the land. In the case that we are not able to deliver on our contractual commitment, lot buyers will receive refunds before any money is paid out to investors or general partners.
The best way to ensure that Alegría will be the community as it is described is to commit with full-faith and to get involved! Early lot buyers are investors in the dream – and your capital and participation is what makes this dream a reality! We can’t build this community alone…it takes a village to build a village! ;)
Under what circumstances would we get our full deposit back?
The only circumstance in which you would receive your full deposit back is if we as the partnership fail to deliver on the community amenities outlined in the contract and addendum.