Real Estate Law

This study ensures clarity on the exact extent of the property, knowledge of the land use plan defining what type of construction is allowed, the feasibility of subdividing the land, and guarantees that the property is not located in a risk area. These aspects provide essential support before making a significant real estate investment.

You need the property deed, encumbrance certificate, municipal appraisal, proof of tax payment, and ID cards and voting certificates of the parties involved.

Ownership can be verified through certificates obtained from the Local Property Register.

These documents also help identify any potential property encumbrances or limitations.

The legal obligations in a real estate transaction are clear: the seller must deliver the property free of encumbrances and in the agreed conditions, while the buyer must pay the agreed price and comply with the terms of the contract. It is crucial that the payment is made at the time of signing the contract, using means such as bank transfers, account deposits, certified checks, or cash payment.

They can be resolved through mediation, out-of-court settlements, or, if necessary, through a lawsuit filed before the competent courts.

If my property is not correctly delimited, it is crucial to carry out a demarcation process. This involves the participation of both the adjoining owners and the property owner to clearly mark the boundaries. Often, boundaries may be undefined, so the assistance of a surveyor is crucial to determine the boundaries, adjoining properties, and the total area of the land accurately.

When buying or selling a property in Ecuador, you should consider the following taxes and additional costs:

1. Property Transfer Tax: Corresponds to 1% of the property's value and is paid by the seller.
2. Property Tax: This annual tax on the property must be paid in order to get the sell authorization.
3. Notary and Registration Fees: Include the costs of the public deed and property registration. These costs vary according to the property price.
4. Real Estate Agency Commissions: If you use the services of an agency, they usually charge a percentage of the sale price.
5. Lawyer fees.

In Ecuador, the common marital regime can affect the ownership of real estate as follows:

1. Marital Community: Properties acquired during the marriage are considered part of the marital community and belong to both spouses. To sell a property acquired during the marriage, the consent of both spouses is required.
2. Separation of Property: If the marriage is governed by a separation of property regime, each spouse maintains individual ownership of the properties acquired before and during the marriage.

To protect real estate investment in Ecuador, there are several legal security measures:

1. Property Registration: Ensure that the property is duly registered and that the titles are clear and free of encumbrances.
2. Encumbrance Certificate: Obtain this certificate to verify that the property has no mortgages, liens, or other legal encumbrances.
3. Clear and Detailed Contracts: Draft clear and detailed purchase-sale contracts, preferably with legal advice, to avoid future disputes.
4. Notarization of Documents: Conducting the transaction through a public notary is mandatory when you buy/sell real estate.

A foreigner should consider the following when buying property in Ecuador:

1. Legal Requirements: Check if there are any legal restrictions for foreigners to buy property in the area of interest. Certain areas like environmental protection areas may have limitations.
2. Visas and Residency: Consider the visa and residency requirements that may affect property ownership and use in Ecuador.
3. Legal Advice: Hire a lawyer specialized in real estate law to ensure that all transactions are conducted in accordance with Ecuadorian law.