When investing in real estate, everyone knows that one need to be sure that there is all the paperwork.
But, how one can be sure of it?
When a person advertises a real estate for sale, knows that people who is really interested on buying are going to ask for the deed. So, they have it handy.
Dont expect a seller to send you a deed by skype, that is against his/her privacy.
A deed includes:
-A short term history of how the real estate was purchased by the actual owner. It will show how he/she got it and when.
-Property Registration Cert (the office where people notifies the Gov/municipality that he/she invested in real estate)
-Ownership records (shows the true owner's name)
-Fire Department certificate of debt free (saying that the owner don't owe anything to them)
-Unencumbered certificate (so the buyer is sure that this real estate is not under dispute for any debt or mortgage)
-The tax receipt payment for the year (2014 or at least 2013)
-Cedula copy of the previous owner, the seller (who is the current owner)
-Cedula copy of witnesses of the sale
-Cedula copy of spouses. (if applies)
Lets say I find a really nice real estate in a excellent location and for a very good price. The seller says he can make a sales contract (like in the States) and it will be mine today.
Sounds great!! But!! What is wrong with that situation?
There is not such a sales contract doc in Ecuador.
For real estate sales, Ecuador has the Municipalities plus the Notaries.
Is the Notario who MUST do the sales contract.
Here is a tricky part:
In Ecuador not anyone can be a Notary Public (like in the States where a person get a license a stamp and can start working)
In Ecuador a Notary Public is a lawyer with a high College degree.
The lawyer who want to be a Notary need to do a test (they do the test at CONSEJO DE LA JUDICATURA)
, the lawyer with the highest grade on the test will be the one who will receive the responsibility of managing a Notary in a city.
* Art. innumerado (8.1).- [Calificación].- A quienes aspiren a ser notarios se los Calificará de acuerdo con el siguiente puntaje:
Un punto por cada dos años de haber obtenido el título de Abogado de los Tribunales de Justicia de la República hasta un máximo de cuatro;
Un punto por cada año de ejercicio de la función de Notario hasta un máximo cuatro;
Un punto por tener el título de Licenciado en Ciencias Políticas y Sociales o en Jurisprudencia;
Un punto por tener el título de Abogado de los Juzgados y Tribunales de Justicia;
Un punto por tener el título de Doctor e Jurisprudencia;
Un punto por cada dos años en el desempeño de la cátedra universitaria en asignaturas vinculadas con la ciencia jurídica hasta un máximo de tres;
Un punto por cada obra publicada sobre materias relacionadas con la actividad notarial hasta un máximo de tres; y,
Un punto por cada cuatro años de haber ejercido algún cargo de la Función Judicial hasta un máximo de cuatro.
Si los opositores a una misma notaría acreditaren igualdad de puntaje, la Corte Superior de Justicia nombrará al notario en ejercicio.
* Art. 9,- [Requisitos].- Para ser notario si requiere la nominación de la respectiva Corte Superior del Distrito. El aspirante deberá cumplir los siguientes requisitos:
a) Ser ecuatoriano por nacimiento;
b) Estar en ejercicio de los derechos de ciudadanía;
c) Gozar de buena reputación y acreditar idoneidad ante un Tribunal integrada por un Ministro Juez delegado de la Corte Superior, un delegada por el Colegio de Notarios y un delegado por el Colegio de Abogados; los delegados por los colegios de notarios y abogados, deberán ser miembros del Tribunal de Honor de sus respectivos colegios; y,
d) Tener título de Abogado o de Doctor en Jurisprudencia(1).
(1) Nota: El inciso segundo del artículo 129 de la Ley Orgánica de la Función Judicial (L. 891. RO 636: 11-sep-1974), dispone: “Si el pretendiente al cargo fuere doctor en jurisprudencia o abogado no necesitará rendir examen de oposición, y será preferido si acreditare las demás condiciones requeridas”.
Podrán también ser notarios los ciudadanos que acrediten notoria probidad y conocimientos suficientes en materia notarial, dándose preferencia a aquellas personas que hayan ejercido esta función.
Para el efecto, en los respectivas concursos de merecimientos y oposición para proveer vacantes, podrán participar los ciudadanos que acrediten estas cualidades conforme a la ley.
* Art. 8.- [Nombramiento].- En cada cantón habrá el número de notarios que determine la Corte Suprema de Justicia, en base al informe estadístico elaborado anualmente por la Federación Ecuatoriana de Notarios sobre el número de actos y contratos realizados en cada jurisdicción cantonal. Conforme a esta norma el número de notarios en cada cantón, podrá ser aumentado o disminuido según el caso cada año (1).
(now you realize why you see signs like "NOTARIA PRIMERA")
So, a sales contract in Ecuador means nothing if has not the stamp from the Notario.
No Notario, no Municipality
No Municipality, No Property Registration stamp
No Property Registration stamps, no Fire Dept Cert
The person who is well informed dont get scammed.
Not everything is a scam. The thread Las Olas is still open (and everyone had comment how bad business it is while Amazing ocean view lots is closed because few paranoid fellows expats report it as a scam when it is not. I bought land in that place whit all the paperwork in order.
People who are not in Ecuador, cant give advice about real estate, food, plants or anything, because if one have not smelled it, touch it,bite it, cant tell what flavor the ice cream has.
Some areas are more expensive than others.
One needs to consider that one might need medical attention, a pharmacy, a vet, a laundry service, public transportation
As more services a town can offer, the higher the prices will be. (it will also depend of how desirable or the demand of housing in a specific area)
In the States real estate prices are lower than in Ecuador.
But taxes in Ecuador are lower than in the States.
If anyone has any question, will be glad to help anyone for free. Info always should be for free.
When purchasing real estate.
Do you think real estate prices are lower in the States? It seems the opposite is true if people are going to Ecuador to buy land and houses. In good neighborhood of my city 3 bedroom house is $200,000 minimum. California is almost twice as much for the same thing. Even with crash in 2008 real estate is still vey expensive. Have you been here? Of course you are right about taxes
I suggested to Amazing Ocean view lots that he open a new thread with him writing the ad instead of his wife? Maybe because there was so much reaction and over reaction. I think the language problem was a big issue. Just my opinion. I don't know what the team found in their investigation. Well see what happens. Maybe they keep Las Olas open so that interested people are warned that it definitely sounds like some kind of scam. I don't think it is paranoid there are a lot of scams.
Also congratulations that you started your house in PL. Greg said that it is brick. I'm sure that must be the smartest thing.As I mentioned in Amazing lots thread you always have good advice.
MariaPiaBlog wrote:The person who is well informed dont get scammed....In the States real estate prices are lower than in Ecuador.
But taxes in Ecuador are lower than in the States.
Am wondering if this is a typo or if you really believe that USA real estate prices are lower than Ecuador's.
cccmedia wrote:MariaPiaBlog wrote:The person who is well informed dont get scammed....In the States real estate prices are lower than in Ecuador.
But taxes in Ecuador are lower than in the States.
Am wondering if this is a typo or if you really believe that USA real estate prices are lower than Ecuador's.
What I believe does not matter. The post is about When Buying Real Estate.
The statement above that USA real estate prices are lower than Ecuador's is neither credible nor supported by facts.
I didn't didn't think so either
For instance
In the States
In Ecuador
cccmedia, do you really want info and are willing to learn about EC or you feel lonely and just want to talk?
Sue, as an adult I dont need to be told that there is not just black & white there is any shades in the middle. The same about prices on real estate, Im sure that as an adult that you afre you dont need me to tell you this either.
Lately I have seen people commenting in the forum just for "fun" (I mean, they dont really want to learn or know about anything, they are just mean to one another) people talking about weird things that only shows they dont know what they are talking about.
I wish the forum raises the quality of post instead of having a bunch of people doing nothing good for it.
Please, for everyone's sakeand for love to the knowledge (which is great, keep learning as much one can) lets keep this post as close we can to the original point, which is Real Estate Purchase, not what people feels about someone.
kind regards to everyone.
Hi all,
We have removed some posts that were off topic for info.
Thanks
Armand
Expat.com Team
MariaPiaBlog wrote:Please, for everyone's sakeand for love to the knowledge (which is great, keep learning as much one can) lets keep this post as close we can to the original point, which is Real Estate Purchase.
Your claim that U.S. real estate is cheaper than Ecuador's IS relevant to Real Estate Purchase.
It's unfortunate that, absent facts to back up such a claim, you resorted to the "feel lonely" put-down and criticised other posters whose only fault was to post on topics that you deem unworthy.
MariaPia, Thanks for being open to GIVING information to educate others. I would hope you would be equally OPEN to receivng information yourself and not take it as a criticism. Land/Real estate prices in the States and Europe are much higher than in EC. That is a fact. I appreciate the information you print but it is up to each person to do their own due diligence when it comes to spending money, buying property, etc.
aterosin wrote:MariaPia, Thanks for being open to GIVING information to educate others. I would hope you would be equally OPEN to receivng information yourself and not take it as a criticism. Land/Real estate prices in the States and Europe are much higher than in EC. That is a fact. I appreciate the information you print but it is up to each person to do their own due diligence when it comes to spending money, buying property, etc.
You are right! Thanks for your replay to the post. Hope the thread can help people about how the real estate purchases work in Ecuador.
In certain areas, real estate is indeed lower in the states...but isn't that true just about anywhere? Certainly prices for Pacific coastal real estate in California are MUCH greater than here in Ecuador where you can buy it for a fraction of what you would pay there in the states....I have seen parcels here from pennies per sq. meter (for very large parcels) to still only a couple of dollars a sq meter (roughly .18 cents per sq foot)....SO, truly Ecuador is better priced than many of the other options and in a country that you can live comfortably in and would want to...not some truly out of the way destination. Construction costs will vary and if you are comparing apples to apples you will find that you can build or buy for less here than in the states for the most part, although sometimes the prices can be the same for high quality here as in the states. In the larger cities construction costs run more and it is now common for construction costs to exceed $100 per sq ft for good construction and high quality finishes. There are studies done yearly comparing low, middle and high end construction in different cities so this information is correct and current. Everyone has an opinion (remember what everyone says about them too...;-), but the only true test and only true knowledge you can gain is by being here yourself, not taking anyone else's words for anything, checking it out yourself...after all it is YOUR money to do with as you please...but also YOUR responsibility to spend it your way, whether anyone else things it wise or not. I don't think there is a subject where you will not find differing opinions and the word scam seems to come out of everyone's mouth when often times it is just not so. Knowledge is the key, getting proper research accomplished, doing the best due diligence you can, then making your own decision and living with it's consequences. Maria's comments about purchasing real estate in Ecuador are right on and so very true...I have purchased and sold a lot of it and there is NO substitute for real knowledge of the procedures and processes. It is not hard to buy real estate here and it can be done in your own name, in a self directed IRA name, or even a company name...it is basically fee simple and the only restrictions for foreigners owning land is in sensitive security areas, national lands, by military bases and airports and by and around other countries borders etc....just like it should be really. Developed land is a different animal all together and the differences between a lotizacion and an urbanizacion are important. Gated communities are well received by South Americans since they have always built walls and secured their doors and windows as it is so living in a place that provides that security without it having to be borne by them is welcoming. Let's not forget the importance they place on living in a community where others can live and participate together openly without barriers and maybe this is for you and maybe not.....it is all about what makes you happy. I can tell you that gated, secure communities with amenities and good infrastructure are costly to build and costly to maintain but they have a niche within the culture of the South American mindset. In the states we are used to them so they may not seem that big a deal....but remember, often times other countries are not quite up to the normal that we see daily and embrace what other countries bring or supply to them and they try to imitate that if they can afford to do so. The term "buyer beware" has been around for centuries, but as long as you do your research, don't believe the "pie in the sky" stories, get some help if you are not fluent and use good common sense and judgement, you will most likely be just fine. Good luck everyone...enjoy the adventure!!
The only true value for cross-border real estate comparison is as close to like-to-like real estate as possible. You don't compare an oceanfront condo, in the newest development of the hottest coastal zone in Ecuador to an inner city, slum neighborhood dilapidated 2-story home in, say, the USA. Having said that...there is no like-for-like real estate comparison between the USA and Ecuador, where the USA real estate comes out on top as "better value" and especially not if you rightfully factor in the cost of taxes, utilities, etc. (the intangibles).
32 million will get you a nice house, and spread of land on the California Coast, but think it might be a bit out of the price range for the average Joe.
http://www.remax.com/realestatehomesfor … 54786.html
Can you really compare anywhere in the world to the U.S. from a real estate perspective? I mean the U.S. is huge with choices in all price ranges. Not to mention some states have no income tax, some no sales tax, some low property taxes, some high income taxes, some high property taxes etc. Some states tax no social security, and others do. Some like Florida have no income tax, but pretty sure the property tax is fairly high, and if live on or near water am pretty sure the home insurance is very high. Some states the average family earnings is higher than others. Some are more conservative. Some are more liberal. So on, and so on. The advantage of the U.S. in my opinion is that there is just so many options, and so much to choose from.
Can't argue with the choices model, but every country has a myriad of choices and one could argue that behemoths like Brazil could arguably offer more than even the USA. Not a spot or locale that Ecuador can't match up and beat USA pricing is all I was saying. Not for true like-to-like comparisons. However, totally agree that the USA's sheer size means it offers a large volume of inventory at all times.
Actually it is very difficult to compare real estate in one country to any other country as both you and HGQ pointed out. When you factor in true "cost" of ownership....Ecuador comes out on top in that regard for me.....of course we can banter about the benefits of the different countries, areas etc. but the reality is this...some of us will take the adventures in our lives and enjoy them and others won't for whatever reasons they believe are important to them and that is what makes the world go round and round (IMHO). The only true test of value is based on what you "perceive" it to be for your own reasons and desires....I would love to have that parcel on the coast of California....BUT, it is just so slightly out of my price range...LOL!
Yeah, I get what you're saying HQ. Probably doesn't always seem like it, but I think Ecuador is a wonderful place, with some great real estate prices, and some great rental prices as well. If you can't find a place that meets your criteria in Ecuador, then you are probably not looking very hard.
From what I understand is that while house prices may be lower than in the United States. For like for like properties Ecuador is lower, but the difference is not be quite as much as much as you would think. (Nice house in prime area, gated community, oceanfront in safe community, etc.) However, the real savings come from the much lower carrying cost as well as the cost of living while you are there. Is this correct?
LindaB10 wrote:From what I understand is that while house prices may be lower than in the United States. For like for like properties Ecuador is lower, but the difference is not be quite as much as much as you would think. (Nice house in prime area, gated community, oceanfront in safe community, etc.) However, the real savings come from the much lower carrying cost as well as the cost of living while you are there. Is this correct?
Extremely difficult to compare costs-of-living because of individual spending habits, needs and desired standard of living. (Are you really "living" or just "subsisting"?). Also, a wide variance that exists within the same country (Dallas 20 - 25% lower cost of living than, say, New York or Boston.) Plus, Detroit would have a low cost of living, but who would want to live there?
Nonetheless, throwing all the data together and comparing cities, the savings can be significant across the board, including for housing costs (rent or buy) and other day-to-day costs. Your results may differ, depending on lifestyle.
Vancouver vs. Quito:
http://www.numbeo.com/cost-of-living/co … ity2=Quito
New York vs. Quito:
http://www.numbeo.com/cost-of-living/co … ity2=Quito
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