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A PRIVATE RESIDENCE CLUBOwner InformationThe Palms at Playa Flamingo is a member-owned private residence club providing a luxurioussanctuary on Costa Rica’s premier beach. Combining all the advantages of vacation homeownership with the services and amenities of a first-class hotel, The Palms offers its owners alifetime of hassle-free Costa Rica vacations.Playa Flamingo is located in the heart of the Guanacaste region of Costa Rica’s Northern PacificCoast – The Gold Coast – and is known for the breathtaking beauty of its beaches. Renownedfor its clear warm waters, soft white sand, beautiful sunsets and world class sport fishing, PlayaFlamingo has been awarded the prestigious Blue Flag designation by the global Foundation forEnvironmental Education (“FEE”).This recognition distinguishes Playa Flamingo as anecological beach meeting FEE’s most stringent standards for water quality, safety andenvironmental sensitivity. Just offshore the Catalina Islands offer outstanding scuba diving,snorkeling and fishing.The Palms is just 45 minutes drive from Liberia International Airport offering convenient accessfor international visitors from major US cities including Houston, Dallas, Atlanta, Miami,Denver, Los Angeles and New York. Costa Ricans enjoy easy commuter access via a short 45minute flight from San José to nearby Tamarindo Airport, a quick 25 minute drive from PlayaFlamingo.The Palms private residence club is comprised of 32 two bedroom Villas and 2 three bedroomVillas within an exclusive gated community. Built with the highest standards, the Club Villasfeature natural Costa Rican materials combined with old world craftsmanship. Each Villa hasbeen appointed with the highest quality appliances (Sub Zero and Viking) and natural CostaRican materials (marble, granite and native Costa Rican woods). All Villas are oriented tomaximize enjoyment of the beautiful beach and the glory of each Costa Rican sunset.1
Owner Amenities and ServicesOwners, their family and guests can enjoy services and amenities not available with most otherCosta Rican vacation homes.Location, Location, Location! The Palms enjoys one of Costa Rica’s most scenic beaches.Rarely do you find a Pacific beach with such warm water (80 degrees year round), soft whitesand and gentle slope – ideal for swimming, boogie-boarding, body or paddle boarding. Yourbeach view of the ocean and the Catalina Islands offshore is framed by swaying palms andgolden sunsets. The Palms is simply unmatched. Its gardens are adorned with an array of exoticplants, beautiful tropical flowers and stately Royal palms. These lush gardens attract butterfliesand dozens of tropical bird species – just as nature intended.Private, Gated Community -- The Palms is within a gated compound where your privacy andsecurity is ensured by the Club’s 24-hour security.Outdoor Infinity-Edge Swimming Pool and Tropical Spa Pool – The Club’s tropical spa poolflows gently into a spectacular infinity edge pool that seemingly pours into the warm, bluewaters of the Pacific Ocean. Enjoy the view from your terrace or from the palm-lined, pool-sidesunning decks just steps from your door. Quench your thirst with your favorite beverage fromthe Club’s poolside bar. It’s the ultimate location for your relaxation.Beach Services - The Club staff provides signature umbrellas, luxurious chaises, side tables andbeach towels each morning.Grilling and Entertainment Area – For the grill master in the family, the Club has anentertainment palapa equipped with two large, commercial grade Weber grills, refrigerators andbar-style seating. Fresh local fish and lobster are abundant and the local master butcher canprovide the best in fresh meats for your family barbecue. A private chef and bartender can alsobe arranged to provide a gourmet dinner palapa style. Best of all, since you’re on vacation,whether you do the grilling yourself or allow your family to be served by a chef, the Club staffcleans and maintains the grills and entertainment area so you can maximize your relaxation andquality time with family.2
Fitness Center – Start your day with an exhilarating jog or walk down the beach or maintainyour fitness program in the Club’s well-equipped fitness center overlooking the ocean.Airport Transportation – While you may prefer the scenic drive from San José or the mobilityto explore the area with a rental car, the Club provides a personal welcome and transportationfrom either Liberia or Tamarindo airports for those arriving by air.Concierge - A level of personal attention reminiscent of days gone by will enrich each of yourvacations. You arrive relaxed and ready to enjoy the very first moment in your Costa Ricanretreat. Whether you seek a rare butterfly or a battle with a mighty marlin, any and all areaexcursions will be pre-arranged to ensure that you fully experience the area’s multitude of floraand fauna. A multi-lingual driver and car can be arranged to ensure that you get the most of yourtours. Diner reservations or a private chef can be scheduled. In-Villa massages services are alsoavailable.Pre-arrival Grocery Shopping Service - At your request, your favorite foods and beverageswill be purchased on your account and placed in your spacious kitchen just prior to your arrival.Daily Housekeeping – Club owners receive full housekeeping upon their departure and a dailytidy consisting of bath linen replenishment, bed-making and trash removal. The Club alsoreplaces bath linens mid-week to ensure freshness.Massage Services – The Club concierge will arrange in-Villa massage services to maximizeyour enjoyment and relaxation.Clothing and Equipment Storage — Residence Club owners are freed from the burden oftransporting vacation clothing and beach gear. Your personal items may be stored in a secure,climate-controlled area, awaiting your next hassle-free visit. Just prior to your arrival, yourbelongings will be placed in your Club Villa.Bellman Service – Club staff are available to assist you with luggage upon arrival and departureand also care for your Owner storage containers.3
Business Center – Stay in touch with your business if needed at the Club’s business centerwhich provides computer, printer, fax and internet services. Each Club Villa is also equippedwith internet service and a Vonage telephone providing international long distance service.Private Staff — Your professional, friendly, attentive Club staff ensures that every visit is funfilled and worry-free.4
ANSWERS TO FREQUENTLY ASKED QUESTIONSWhat is The Palms private residence club?The Palms is a private, member-owned residence club comprising elegant two bedroom Villasand amenities in a secure and luxuriously landscaped sanctuary on Playa Flamingo, one of CostaRica’s premier beaches. The Club is designed to offer owners unlimited, flexible usage of theClub’s luxuriously furnished Villas, a variety of amenities and hospitality services, worry-freeownership and hassle-free vacations.If I purchase at the Club, do I own real estate?Yes. Ownership is evidenced by a real estate deed, which is extremely rare for oceanfrontproperty in Costa Rica. Less than 5% of Costa Rica’s coastline is privately titled property.These other properties can only be leased from the government through a ConcessionAgreement, which does not provide the benefits of private property ownership. The opportunityto own privately titled beachfront property along Costa Rica’s beautiful Gold Coast ofGuanacaste is extremely rare and valuable.Each Club owner is conveyed one-tenth (1/10th) undivided, fee simple deeded interest inVilla 16at The Palms. . Like other real estate, ownership may be sold, willed or transferred at any time.For ease of maintenance and replacements, the Club’s Owners’ Association retains ownership ofthe Villa furnishings on behalf of the Owners.What are the advantages of Private Residence Club ownership?Residence Club ownership is the fastest growing segment of the luxury vacation home marketaround the globe. This innovative concept provides the ultimate vacation experience and thebenefits of real estate ownership while dramatically reducing the responsibilities and financialburdens associated with traditional ownership. The Palms Private Residence Club has beencreated for those who desire a worry-free Costa Rican home with hotel-style services andamenities.5
Have residence clubs been developed at other prestigious locations?Yes. Residence Clubs are well established at many other premier ski, beach, golf and urbandestinations throughout North America, including Aspen and Vail, Colorado; Deer Valley, Utah;Napa Valley, Lake Tahoe and La Quinta, California; New York City; Bermuda and Mexico.More recently, the Club concept has been established in Europe including Florence, Italy and inrural Tuscany. Each of these residence clubs is operated much like The Palms. New residenceclubs are in development in a variety of other prestigious beach, golf, mountain and urbandestinations worldwide. Through Peter Kempf International, the most experienced and successfulcreators of residence clubs worldwide are part of the development team for The Palms.As a Residence Club Owner, how often can I vacation at the Club?Owners can vacation at The Palms as often as they wish, in accordance with the Club’s generousand flexible reservation privileges. The Residence Club is operated much like a prestigiousequity golf country club where there is no limit on use. If some owners visit their Club lessoften, other owners can visit more. As an Owner, you have the flexibility of reserving vacationswell in advance as well as booking additional space available and short-notice vacationswhenever available.How many Residence Club ownerships will be sold?The Palms will offer a maximum of only ten (10) ownerships for the Club Villa. With a limit often owners in the Residence Club, ownership affords frequent, flexible and totally relaxingCosta Rican vacations.Can a company purchase a Residence Club Ownership?Yes. In fact, properties in Costa Rica are typically sold as an asset within a personal Costa Ricancorporation. The advantages of this are that the sale is not subject to sales tax (a savings of13%); the corporation can be subsequently sold thereby avoiding property transfer tax; and, acorporation shields an owner from liability. Additionally, a personal corporation allows nonresidents to have a Costa Rican cell phone and certain other advantages.6
Can more than one family or individual share a single Residence Club ownership?Yes. Multiple individuals or families can share a single Club Ownership through a jointly ownedcorporation; however, their reservation privileges are not increased beyond that of a single ClubOwnership.Is The Palms a typical timeshare development?No. The Palms offers rare deeded ownership of real estate in Costa Rica. While often confusedwith timesharing, the Residence Club is enjoyed much like a private equity golf country club.Rather than reserving tee times, Residence Club Owners reserve a Club Villa. Timesharingtypically provides the right to use only a specific week or weeks and lodging is limited to aspecific unit. The Residence Club doesn’t sell “weeks of vacation”. Residence Club Ownershave access to the Club Villa with unlimited usage, in accordance with the Club’s reservationprivileges and availability.How do Residence Club owners reserve lodging?The Club’s reservation privileges enable Owners to reserve vacations well in advance, while alsoaccommodating more spontaneous visits. Each May, Owners reserve their most importantvacation dates for the coming Club Year, which starts in November. Additional Club vacationsmay be reserved throughout the year based on availability. A detailed explanation of Clubreservation procedures is provided in the Reservation Privileges section of this document.Do Residence Club Owners have guest privileges?Yes. Owners may invite guests to stay with them and they may also send unaccompanied gueststo enjoy their confirmed Planned Vacation reservations without a guest fee.Do Residence Club Owners pay Club fees?Yes. Club owners pay fees for the professional management, operation and maintenance of allClub Villas, facilities and common areas. These fees are significantly lower and are morecomprehensive than those of a wholly-owned vacation home. Included in these annual fees arefunds for maintenance, insurance, utilities, administrative salaries, supplies, property taxes, trashremoval, legal/accounting and reserves for the replacement and/or refurbishing of Club facilitiesand common areas. Please request a Financial Information sheet for the current Club Fees.7
Who establishes the dues and controls the affairs of the Residence Club?A non-profit Club Owners’ Association has been formed to administer the Club under thedirection of its owner-elected Board of Directors. The Board of Directors have, in turn, engageda professional hospitality management firm to manage the day-to-day operations of the Club.The Manager annually prepares a zero-based budget for approval by the Board of Directors.Will The Residence Club be open to the public?When fully subscribed, the Club Villas will be operated for the exclusive use and benefit ofResidence Club Owners and their guests. Prior to full subscription, limited public use byinvitation may be permitted for marketing purposes. This type of use will not diminish lodgingavailability for Owners.Do Residence Club owners pay any lodging charges when they stay at their Club?No. Owners do not pay nightly lodging fees for use of Club Villa. They do pay for housekeepingand any additional requested services such as personal chefs and massage services.8
Reservation PrivilegesThe Reservation Privileges for Owners of The Palms Private Residence Club have been designedto ensure that all Owners have equal access Owners can use lodging during Planned Vacations,Space Available Vacations and Short Notice Vacations. These usage options are describedbelow. There is no limit on the amount of vacations an Owner can enjoy at the Club. Use issubject only to the procedures described below and availability.The Reservation Privileges have been carefully formulated in an attempt to be fair and equitableto all Owners. Each Owner’s Planned Vacations, Space Available Vacations and Short NoticeVacations will be confirmed in Club Villain which the Owner has deeded ownership.DefinitionsCertain terms and phrases have been defined below to clarify their intended meaning and usage.Throughout the following policies and procedures, these terms and phrases can be identifiedbecause they begin with capital letters.“Accompanied Guest” — Any guest who lodges with an Owner in the Owner’s reserved ClubVilla. The total number of persons lodged in a Club Villa cannot exceed the Sleeping Capacity ofthat Club Villa. No lodging fees are charged for Accompanied Guests.“Club” –The Palms – A Private Residence Club."Club Management” — The professional company selected by the Board of Directors of theClub to supervise the day-to-day operations of the Club in accordance with the ManagementAgreement.“Club Villa” — A condominium that is part of The Palms Private Residence Club and is ownedby the Club Owners.“Club Year” — The Club Year (reservations year) begins November 1st and ends October 31st.9
“Club Fees” — The fees paid by Owners for the professional management, operation andmaintenance of all Club Villas, Club facilities and common areas. Included in these fees arefunds for staff salaries, supplies, repairs, trash removal, legal/accounting, fuel, utilities, propertytaxes and periodic replacements and/or refurbishments."Owner" — The owner of record of a Club Ownership, including their spouse and children, orthe person designated in writing by the Ownership (the "Designated Owner") to have Ownershipprivileges during a particular Club Year."Ownership" — An Ownership provides a one-tenth (1/10th) undivided, deeded ownershipinterest in a particular Club Villa and lodging privileges. Each Ownership must identify oneperson whose responsibility it is to submit reservation requests.For the purposes of thisdocument, Owner and Ownership are used interchangeably. However, it should be noted that incases where an Ownership is owned by more than one Owner or family or by a non-personalentity such as a corporation, the Ownership must designate one of the Owners (the “DesignatedOwner”) to exercise the reservation privileges of the Ownership for that particular Club Year.Other co-Owners are considered to be Guests of the Designated Owner. Designated Owners canbe changed each Club Year simply by notifying Club Management in writing.“Reservation Priority Number” — A Reservation Priority Number is assigned to each Ownerfor each Club Year. This number is used by Club Management to allocate Planned Vacationsand certain Space Available Vacations for Owners when demand exceeds lodging supply asdescribed below. This Reservation Priority Number changes each year, based on the originalOwnership number (assigned at closing), to equitably allocate Planned Vacations and initialSpace Available Vacations over the years.“Flex-Res System ” — A flexible reservations system that has been established to ensure thatPlanned Vacation and initial Space Available use of Club Villa by all Owners is equitable. TheFlex-Res System is used to determine reservation confirmations in the rare occasions that thenumber of Planned Vacation reservation requests for a certain time periods exceed theavailability during that time period. It is also used to allocate initial Space Available reservationrequests (as described below).10
“Sleeping Capacity” — The maximum number of persons permitted to lodge in a Club Villa.The Sleeping Capacity of a two bedroom Club Villa is six.“The Palms – A Private Residence Club” or “The Palms Private Residence Club” — Theshared ownership real estate development in Flamingo Beach, Guanacaste, Costa Rica.“Unaccompanied Guest” — Any guest who lodges in a Club Villa without an Owner during anOwner’s confirmed Planned Vacation reservation. An Owner requesting lodging for anUnaccompanied Guest must specify the Unaccompanied Guest’s name, address and telephonenumber in writing at least fourteen (14) days prior to the arrival date so that Club Managementcan send a confirmation notice and pre-arrival information to that Unaccompanied Guest.Unaccompanied Guests are required to pay all housekeeping fees and incidental charges upondeparture unless the sponsoring Owner has arranged payment in advance. The sponsoring Owneris responsible for any unpaid charges incurred by their Unaccompanied Guests and is responsiblefor any damages to a Club Villa or Club facilities caused by their Unaccompanied Guests. Thenumber of persons lodged with an Unaccompanied Guest in the Club Villa cannot exceed theSleeping Capacity of that Club Villa.Types of Vacation Reservations“Planned Vacations” — Those reservations by which Owners may reserve lodging forthemselves or an Unaccompanied Guest prior to commencement of the Club Year and which aresubject to the Flex-Res System . Each Planned Vacation reservation can be for up to seven (7)nights each. Owners are given the opportunity to reserve up to two (2) Planned Vacations,totaling up to fourteen (14) Planned Vacation days, during each Club Year. Owners have theflexibility of requesting Planned Vacations as either two separate Planned Vacations of up toseven (7) days each; or, two consecutive Planned Vacation totaling up to fourteen (14) daysIn the event an Owner wishes to cancel a Planned Vacation reservation, that request forcancellation must be received by Club Management, in writing, at least fourteen (14) days priorto the scheduled arrival, in order for the Owner to retain the usage rights associated with thecanceled Planned Vacation. If the written cancellation notice is not received by ClubManagement at least fourteen (14) days prior to the scheduled arrival (“Failed Reservation”),then all of the Planned Vacation days not properly canceled will be forfeited by Owner.11
“Space Available Vacations” — In addition to their Planned Vacations and Short NoticeVacations, each Owner has unlimited access to and usage of Club Villa on a space-availablebasis. Owners can occupy the Club Villa during confirmed Space Available Vacations forperiods up to seven (7) days per reservation.Each 1/10th Owner can have only one (1) Space Available Vacation on the books at a time.Once used, Space Available reservations for all Owners can be renewed again and againthroughout the Club Year. Usage is considered to be arrival at the Club for the scheduledreservation. Therefore, once you arrive at the Club, you could immediately request anotherSpace Available reservation. In order to maximize availability for Owners and their families,Unaccompanied Guests are not permitted during Space Available Vacations.If an Owner fails to arrive at the Club on the reserved Space Available date without notice toClub Management at least ten (10) days prior to scheduled arrival ("Failed Reservation"), theOwner will be prohibited from making another Space Available or Short-Notice reservation fora period of thirty (30) days from the scheduled departure date of the Failed Reservation.“Short-Notice Vacations” — In addition to Planned and Space Available Vacations, eachOwner can reserve Short-Notice Vacations anytime within thirty (30) days or less of thescheduled arrival date for that reservation. Owners can occupy a Club Villa during confirmedShort-Notice Vacations for periods up to seven (7) days per reservation.Each 1/10th Owner can have only one (1) Short Notice Vacation on the books at a time.Once used, Short-Notice reservations can be renewed again and again throughout the Club Year.Usage is considered to be arrival at the Club for the scheduled reservation. Therefore, once youarrive at the Club, you could immediately request another Short-Notice reservation.Unaccompanied Guests are not permitted for Short-Notice Vacations.If an Owner fails to arrive at the Club on the reserved date without notice to Club Management atleast twenty-four (24) hours prior to the scheduled arrival ("Failed Reservation"), the Owner willbe prohibited from making another Short-Notice or Space Available reservation for a period ofthirty (30) days from the scheduled departure date of the Failed Reservation.12
Reservation ProceduresPlanned VacationsOn approximately May 1st of each year, Owners are sent a Planned Vacation reservationform, which allows Owners to request their Planned Vacation dates for the upcoming ClubYear. Club Management will note the Reservation Priority Number for each Owner on thePlanned Vacation reservation form. If the Owner does not receive the Planned Vacationreservation request form by May 15th, the Owner should immediately notify Club Management.Each Owner is allowed up to two (2) Planned Vacations during the Club Year that beginsNovember 1st and ends October 31st. Owners can reserve a total of fourteen (14) PlannedVacation days within two (2) reservations. Owners have the flexibility of requesting PlannedVacations as either two separate Planned Vacations of up to seven (7) days each; or, twoconsecutive Planned Vacation totaling up to fourteen (14) days;.A Planned Vacationreservation can be a maximum of seven (7) consecutive days with arrivals and departuresoccurring on or between Saturdays or as is otherwise determined by Club Management for eachClub Year, (i.e., each seven-day Planned Vacation period begins and ends on Saturday).Planned Vacations can be less than seven days if desired with arrivals and departures on orbetween the designated arrival/departure day. The designated arrival/departure day will be notedon the Planned Vacation request form. Exceptions to the arrival and departure times will be atthe sole discretion of Club Management.By May 15th of each year, Owners must return their completed Planned Vacation reservationrequest forms to Club Management. It is the Owner’s responsibility to complete and return thePlanned Vacation reservation request form by May 15th to preserve priority rights for theupcoming Club Year. Planned Vacation reservation request forms received after May 15th willbe considered on a first-come, first-served basis after the Planned Vacation reservation requestforms that were received in a timely manner have been processed.After June 1st, Club Management allocates the Planned Vacations in the following manner:First Planned Vacation — Owners are confirmed for either seven (7) days or fourteen(14) consecutive days based on their requests and their Reservation Priority Numbers. On13
the rare occasion when demand for certain dates exceeds lodging supply, Owners withthe lowest Reservation Priority Numbers will be confirmed.Second Planned Vacation — After the First Planned Vacations are confirmed forOwners, Owners are confirmed for a Second Planned Vacation, the length of which maybe the lesser of the balance of their allocated two (2) Planned Vacations, if any, or seven(7) days. When demand for certain dates exceeds lodging supply, Owners with thehighest Reservation Priority Numbers will be confirmed.By May15th, written confirmation of the Planned Vacations is sent to each Owner.Additionally, a reservations calendar will be provided indicating the remaining available dates.Owners that reserved less than their full entitlement of Planned Vacations will then have theopportunity to make additional reservation requests after May 15th on a first-come, first-servedbasis. These reservations will be made for days shown to be available on the reservationscalendar.Space Available VacationsBeginning June 1st, 1/10th Owners may request one Space Available reservation for theupcoming Club Year. Processing of Space Available Vacation requests will take place duringthe week following June 1st. If Space Available Vacation requests for available dates exceedsupply, Owners with the lowest Reservation Priority Numbers will be confirmed. After June 7th,Club Management will process all Space Available Vacation reservation requests on a firstcome, first-served basis. Once used, Space Available reservations can be renewed again andagain throughout the Club Year.14
Short-Notice VacationsShort Notice Vacations may be requested anytime within thirty (30) days of the requestedarrival date. Owners of 1/10th Ownerships may have only one (1) Short Notice reservation onthe books at a time Once used, Short-Notice reservations can be renewed again and againthroughout the Club Year.Additional PoliciesUse Restrictions – Except for Planned Vacations, Owners are prohibited from renting confirmedClub vacations of any type and from using confirmed vacations of any type for commercialpurposes. The Board of Directors has the right to suspend Club reservation privileges of anyOwner who is more than 60 days in arrears in the payment of Club Fees.Exchanging Planned Vacations - Owners may exchange their confirmed Planned Vacations orportions thereof with other Owners. After Planned Vacations for Owners have been confirmed,Club Management will use its best efforts to facilitate intra-Club exchanges and exchanges canalso be made directly between Owners. Written notice of an exchange must be provided to ClubManagement at least fourteen (14) days prior to the arrival date of the Owner using the earliestvacation involved in the exchange.Owners may also exchange their confirmed Planned Vacations with other similar ResidenceClubs in accordance with the rules and regulations of any exchange company or reciprocal useplan adopted or approved by the Club’s Board of Directors.15
Reservation SummaryEach Owner can reserve up to two (2) Planned Vacations which can be scheduled separately orconsecutively during the Club Year, provided that the total of all Planned Vacations does notexceed fourteen (14) days. Additional vacations can be reserved repeatedly throughout the ClubYear as Space Available and Short Notice Vacations. There is no limit to the number ofvacations an Owner may enjoy at the Club. If some Owners use their Club less, other Ownerscan enjoy it more. All Owners have equal access to the Club Villaon an annual basis. The FlexRes System ensures that over the years all Owners have equal access to Club Villas during peakdemand periods.Important DatesMay 1stPlanned Vacation reservation request forms are sent to Owners.May 15thCompleted Planned Vacation reservation request forms are returned to Club Management.May 15thClub Management confirms Planned Vacation dates.June 1stOwners may begin requesting Space Available reservations for the upcoming Club Year thatbegins November 1st.November 1stThe new Club Year begins. Owners may request a Short-Notice Vacation anytime during theClub Year within thirty (30) days or less of their requested arrival date.Rev. Jan 201916
1 A PRIVATE RESIDENCE CLUB Owner Information The Palms at Playa Flamingo is a member-owned private residence club providing a luxurious sanctuary on Costa Rica's premier beach. Combining all the advantages of vacation home ownership with the services and amenities of a first-class hotel, The Palms offers its owners a lifetime of hassle-free Costa Rica vacations.
