Expat Community > Ecuador

boncur
Joined 2009
Posts: 1180

Ecuadorian Real Estate Caution

14 years ago

Of course, most of you readers of this forum just detest hearing about these things and as someone just said to me "possibly they are in denial", I feel the need to present a warning to people coming here to "buy real estate." There are entities here that will sugar-coat life in Ecuador (for their own motives) because if Ecuador gets a bad rep., it may hinder their "ex-pat service" providing abilities. If Ecuador is perceived as a place of crime, that person of course would sell 'less real estate,' if that happens to be the service they are providing. The following post by a forum poster is a good example, and you will see how something like this possibly could "go wrong" by reading my response. With a hefty "commission" as the dangling carrot, many people will be tempted to 'earn' that commission without ever ethically checking out said property. Do they really care about the buyer? I am speaking generally and am not singling any one person out here whatsoever..... A Good real estate agent is one who will check out the said property for sale, feel that it is a solid investment, and then proudly present it to potential clients, and honestly and happily close deal and earn his commission.

Beware of the person who has befriended you.....and the....."Hey, I have a friend who has a good thing for sale, let me introduce you to them, I'd like to help you....." Beware of people that are just TOO friendly to you at first.

I actually was approached three times here in Ecuador by folks offering me a commission to find purchasers, investors, etc. However I am not in the Real Estate Business and I do not have a Real Estate License to do biz., and it just seems to be something that I would not wish to get involved with.

Never, ever purchase real estate, even if you have seen it, from a foreigner or a local who doesn't live in the area, and is not known in some way by locals. Always do a couple of TITLE SEARCHES for the place in question. That does involve knowing locals OR speaking the local language of Ecuador--Spanish, or hiring translators if you want to know what is really going on. And even if the 'agent' is from that area, you must still be very skeptical. Ask about 10 Ecuadorians and they will tell you that this is the way things are done here in "their" country. Yes, it's been said many times before....'The Gringos come here with THEIR way of doing things, and it is not OUR way of doing things, and if the gringos do not like it, well, they can leave'.....and this will continue til the end of time and no matter how many thousands and thousands, and millions of gringos that show up here, with and without lots of money, Ecuadorians will do things in their country the way it has been done for decades.....and centuries! Those of you who think that you can 'change' this place in any way whatsoever, are very wrong and misguided.

There are alot of pieces of bogus real estate out there for sale: condos, land, houses, all types of property, being 'moved' around this country, with and without land titles, as the locals are "a buzzin'" about all this new-found gringo money in the country! At least that is what the Ecuadorians that I have known for years are telling me. There are a few people who read this forum who will benefit from this information. There are others that will write scathing retorts and call me a Liar and possibly other unsavory names and attack me in some way..... and still yet, there are others who will quietly file this good advice away in their minds for when they DO come to Ecuador! There are a number of gringos and locals in this country who have pulled some scams on gringos, boy do I ever have the first hand knowledge of these sad stories, from Loja on up to the Colombian Border! These stories, so plentiful, could fill a whole chapter in the "Ecuatrocity" book! The 2 different North American entities, who were outright robbed of their money when trying to purchase a Lot and have a house built in Cotacachi, tried to obtain satisfaction from the American Embassy, To No Avail; so do not think even the local authorities, or your own embassy will be able to help you in any way when things go awry.

All of you people that wish to, and must, relocate here, most of you who know no one here except the people you have met on this forum, should be very careful. My advice is to go to a heavily populated ex-pat region, you know where those places are, and talk to as many people as you possibly can, including many locals--ask about the reputation of the person(s) who are actually selling/renting. I do recommend renting at first. Speak with other expat level-minded people who have been here longer than a year or more. Take your time, do not trust anyone. When the boy, Max Chamberlain, was killed over a real estate deal, he was told "by ecuas" that foreigners could not outright own property here. I wonder if perhaps he hadn't been SO NAIVE, he might still be alive! He took what the first people told him as the TRUTH. When in fact, had he spoken to about 5 other entities, he would have found out that what he was told in the first place was a LIE. Anyone can outright own property here, even if you do not have a visa to live here (which wouldn't make sense to me anyway).

So that is one good reason to ask and ask and ask and investigate even more. I remember the person that bought our property in town went around to just about everyone in Otavalo asking about us. Most Ecuadorian Towns and Cities, even the big ones, are very much with a "small town atmosphere"--with everyone knowing everyone else. I know that to be a fact in Quito, the capital city. Very UNLIKE your normal modus operandi up North. North Americans are taught from childhood that they can 'basically' trust what is told to them, etc. My advice is to take everything that you have learned in your life and "re-examine" it, "Ecuador-style." I do wish everyone the best, and may everyone have a happy, honest and fruitful relocation to Ecuador. After all, Ecuador is very much "in style" now, but as you know, styles do change.

POSTER WROTE:

Mike,

This does not have to be an exaggerated [lol] "act now" offer...but if you decide to settle on the Cotacachi area, I know of a very nice, highly upgraded condo there for a good price. When you get around to making your decision...if you´re interested and if the condo is still available, I´ll get you acquainted with it. Best to contact me at: [email protected]
This way we don´t pollute the board with a lot of "commerce" and keep it informational.

I (BONCUR) WROTE:

I will drop an opinion here...I greatly respect [Poster's] real estate expertise, and it's always good to bite off a bit of knowledge in the area in which you live, hence, your expertise will be narrowed down, and the person would become a specialist in the area that he knows best....that is what I like about Nick Vasey in Vilcabamba, he knows the locals, he knows the lay of the land, he knows everything there is to know about that area and its service providers, etc......he isn't selling real estate up here in Otavalo.

So, my take on things is that there are LOTS of condos for sale in Cotacachi, and two "condo gated communities" have gone rogue, people already living there, no TITLES to their properties, one has much far worse problems, that only a LOCAL could tell you! Aparently Gary Scott is "unloading" much of his property.......

I must say that I would HIGHLY recommend Gary Phillips and his wife Linda McFarland, EXTREMELY honest people, they taught Transcendental Medication for many years, among many other things, have travelled the world, and are "in the know" about every single venture for sale in the Cotacachi area! Please contact them if you are serious in seeing what is going on in the area.

Why live in Cotacachi in a condo? Condos are nice, especially on the coast, in the big cities, but the beautiful gateds that are there have beautiful little yards, and barbecue areas, and why be stuck up on the 6th floor in what is basically the countryside? Of course, that is available as well. There are many condos for sale in the Primavera I and the Primavera II.

Michael D'Addio owns a gated community called Shambala and has 6 houses, fully furnished, internet, Direct TV, everything, etc. Unfortunately he has a waiting list.......

Beware of sheisters in Cotacachi. There are two that I just spoke of that are PAYING high commissions to others to market their places to unassuming gringos with $$$. I cannot mention names because evil people here will take advantage of the "famous Ecuadorian Anti-Slander" law which is open to much interpretation by sewer-rat latin lawyers here to further the gains of their sewer-rat clients, IF they want to 'put you down."

Cotacachi IS an extremely, quiet, quaint, clean, little town where alot of the expats do keep to themselves, but there are many groups of friends, activities, etc., etc.

There are a couple of BAD lawyers there who speak English and they are vultures who will pick your bones dry! Again, I cannot mention any names on this forum. However, I could give over a dozen cases.....

Please be careful everyone and I think it is important to find some VERY honest gringos who will guide you in a good way. I have no vested interested whatsoever in promoting the honesty and local knowledge of Gary Phillips and Linda, except that is something rare and good!

One of the BAD gateds is owned by a rich ecuadorian who had lived in the states for over 25 years. No guarantee of honesty. He is sueing various gringos. BAD NEWS, he is of course, one of those offering 'commissions' to others to move his condos.

Be careful everyone! Anything that you do look at to rent, and that is what you should do at first, OR to purchase, check the water pressure. Ask alot of questions and get everything in writing.

AMEN!

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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
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SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

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SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

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Ecuadorian Real Estate Caution

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