This article points out some of the nuances of purchasing real estate here in Ecuador:
http://www.nuwireinvestor.com/articles/options-inflate-real-estate-values-in-ecuador-57509.aspx
Another thing to remember about purchasing property in Ecuador is the possibility of a 'take-over' if you are not using the land.
According to Ecuador's 'Land Laws' that are on the books, you can own land here, but if you are a land owner and have not used the land in some time, the law states that anyone can squat--that is 'take over' that land for their (Ecuadorian's) own use. This is prevalent not only with absentee owners, foreigners, but with rich Ecuadorian land owners as well. It really depends on 'who wants your land and how good your lawyer is.'
I knew an American man who had a milk farm in Cayambe. He since sold his property and returned to the US after living here for many years. But when he purchased it, he had trouble with squatters as he was not 'using' a part of his farm. He spent a fortune on lawyers and in the end, had to give up part of his hacienda to the people that had squatted--everything had to be 'negotiated.' I know of other cases as well.
It is a law that one rarely knows about until it happens to you, albeit, I haven't heard of many cases as of late; it is the law everywhere in Ecuador. People who own land for years with 'plans' to come to live, should be on top of these things.
Of course with all the shady dealings going on here, and unclear and ever-changing government laws, this only adds to the uncertainty that many expats must face when relocating to Ecuador.
http://www.nuwireinvestor.com/articles/options-inflate-real-estate-values-in-ecuador-57509.aspx
Another thing to remember about purchasing property in Ecuador is the possibility of a 'take-over' if you are not using the land.
According to Ecuador's 'Land Laws' that are on the books, you can own land here, but if you are a land owner and have not used the land in some time, the law states that anyone can squat--that is 'take over' that land for their (Ecuadorian's) own use. This is prevalent not only with absentee owners, foreigners, but with rich Ecuadorian land owners as well. It really depends on 'who wants your land and how good your lawyer is.'
I knew an American man who had a milk farm in Cayambe. He since sold his property and returned to the US after living here for many years. But when he purchased it, he had trouble with squatters as he was not 'using' a part of his farm. He spent a fortune on lawyers and in the end, had to give up part of his hacienda to the people that had squatted--everything had to be 'negotiated.' I know of other cases as well.
It is a law that one rarely knows about until it happens to you, albeit, I haven't heard of many cases as of late; it is the law everywhere in Ecuador. People who own land for years with 'plans' to come to live, should be on top of these things.
Of course with all the shady dealings going on here, and unclear and ever-changing government laws, this only adds to the uncertainty that many expats must face when relocating to Ecuador.
