Real Estate Lawyer and Attorney in Ecuador

Real Estate Transactions in Ecuador – Discussion with a Lawyer

I join Sara, my attorney in Ecuador, to discuss the process of buying real estate in Ecuador from a legal perspective.

• Title deed inspection in Ecuador
• Common problems when buying real estate in Ecuador
• Do I need a lawyer to buy property in Ecuador?
• Notarizing documents in Ecuador for property transactions
• How long to close a property transaction in Ecuador?
• How to contact Sara for help with real estate purchases in Ecuador

A few important points you should know before buying real estate in Ecuador

• There are minimal taxes and notary public fees of less than 2% of the value of the real estate you buy in Ecuador.
• In some rare cases it is better to create a Ecuadorian corporation to purchase the real estate; it depends on each individual’s situation and objectives.
• The final contract must then be signed in person at the Notary Public. If you are not present, it can be done with a power of attorney. Buying real estate in Ecuador can be done entirely remotely using the Apostille Treaty system.
• Sara can offer-US based escrow services for your transaction as Ecuador doesn’t have a domestic escrow system.

Why you need a good lawyer for your property transaction in Ecuador

• Many title deeds are not clean. You can have classic situations with liens or mortgages on them, but also cases where the previous transaction was not done properly. For example, maybe the land on which the house sits was sold by a family 10 years ago, and one of the signatures is missing (that cousin who was far away). Effectively, you could suddenly have a family claim the house from you saying the previous sale was not done properly, and seek to grab it from you. As a foreigner, you are more vulnerable to such situations.
• There is an annual property tax on real estate, based on the municipality’s valuation of your property. The valuation may be lower or higher than the purchase price.
• Your lawyer should ensure that there are no outstanding debts related to the property such a home owners association fees, electricity, water, garbage, internet, etc.
• Your lawyer can enable you to pay for the real estate using an escrow account in order to guarantee everyone’s safety. Essentially, you transfer the purchase price to an escrow account, and only once all due diligence has been completed and everything is deemed to be fine will the money be transferred to the seller.
• IMPORTANT: Avoid using a lawyer proposed by your real estate agent. This point is valid for any international market in which you choose to invest. The reality is that there can be a conflict of interest in such cases. Though you are officially the lawyer’s client, who is more important? You and your single transaction, or the agent that brings dozens of clients? Using your own lawyer won’t be more expensive, but will offer you much more security.

Services in Ecuador:

• Real Estate Lawyer in Ecuador
• How to Obtain Residency in Ecuador
• My favourite Realtor in Cuenca, Ecuador

Articles on Ecuador:

• Residency in Ecuador - an under appreciated destination
• Analysis of the Cuenca real estate market