Ecuador Real Estate

The purchase process in Ecuador is as easy as it gets…

• Make a verbal offer either in person, through your agent, or through your attorney.

• One option is to execute a sales contract to hold the property. This is known as a promesa de compraventa. It’s useful if you need time to gather the funds. It also allows time to specify any
  special terms or conditions related to the sale. Normally, the promesa, if used, is accompanied by a 10% to 30% down payment.

• If you don’t need the promesa, you can go right to closing; which is the signing of the escritura de compraventa at the notary.

• Once the escritura is signed, the property must be registered by your attorney. At this time—not before—it’s completely yours. The registered copy of the escritura serves as the deed.

As you can see, it’s possible to close quickly if you have the cash. One of our correspondents living in Ecuador made an offer on a house at 2:00 p.m., and closed by 5:00 p.m. on the same day.

Closing in Ecuador is a transaction only between the buyer and seller. The notary does not hold escrow or disburse funds. Some attorneys however do.

These are used for holding escrow and disbursing funds. This is very convenient if you don’t yet have a local bank account.

Foreigners need permission to own real estate within 50 kilometers of international borders. Permission is also needed within 50 kilometers of coasts. Owning real estate in Ecuador’s Galapagos Islands is prohibited.