Cost fee is the amount of money paid for the original lease plus the cost of additional square footage added to the basic floor plan selected. The cost fee does not include the entrance fee, extras, or amenities you may add.
An initial entrance fee of $1,000 is paid when you sign the lease agreement. After 30 days, an additional $12,000 is due. This first amount is used for land development. The balance is to be paid in four equal parts. The first installment of the balance is due on the date construction begins, and the three remaining installments are due in thirty day intervals.
Because the homes are paid for up front, the financial security to your community is further ensured. Financing is not available thru Rio Concho, Inc.; however, upon approval, it may be obtained from a financial institution.
The Life-Time Agreement
A Life-Time agreement is a contract between a resident and Rio Concho Inc., that may last a day or a lifetime, depending upon the discretion of the resident. The Life-Time Agreement enables the resident to enjoy the home without the everyday work and worry of home ownership. Rio Concho, as the property owner of Rio Concho West, is responsible for the maintenance and upkeep of the the property.
The 90-10 Agreement
The agreement used by Rio Concho, Inc., is called a 90-10 agreement. This agreement is based on an annual depreciation of 2% a year for the first five years of occupancy. At the end of the fifth year of occupancy, the agreement stabilizes at 10% depreciation and allows for at least 90% of the original cost fee to be returned to the resident and no more than the 10% of the original cost fee to be retained by Rio Concho. The purpose of this program is to keep the price of the homes consistent and to make the homes easier to market in the future. If the market increase above the original cost fee, the appreciated amount is divided so that the resident receives half of the appreciation and Rio Concho receives the other half.