5 common legal mistakes in real estate sales in Ecuador
The purchase and sale of a property is one of the most important financial decisions that a person can make. However, in Ecuador it is common for legal errors to be made that can put the investment at risk. At Expert Lawyers, we have advised hundreds of cases in Quito and other cities in the country, and we know exactly what details should not be overlooked.
1. Not verifying the legal situation of the property
Many buyers do not carry out a complete review of the legal status of the property. This includes verifying that the property is properly registered, that it does not have prohibitions on alienation, mortgages or pending litigation. A simple certificate from the Land Registry can save you future headaches.
2. Signing promises of sale without legal advice
Poorly drafted promises of sale are a frequent source of conflicts. Some do not clearly specify deadlines, payment methods or delivery terms, which can lead to lawsuits or loss of money. It is critical to have this document reviewed or drafted by an attorney.
3. Not reviewing the tax situation of the property
Before buying a property, it is necessary to make sure that there are no outstanding debts due to property taxes or municipal fees. These securities can be transferred to the new owner if they are not previously settled. Request the certificates from the corresponding Municipality.
4. Relying on informal intermediaries
In Ecuador it is common to resort to intermediaries or “processors” who do not have legal training. While they may facilitate some steps, they also pose a risk if they act without transparency. Always seek the accompaniment of a lawyer specialized in real estate law.
5. Not registering the deed in the Land Registry
Signing the public deed before a notary is not enough. The process is completed only when the contract is registered in the Land Registry. Without this registration, you will not be legally considered as the owner, which prevents you from exercising rights to the property.
