Ecuador Real Estate Closing Details


Dr. Andres Cordova shares an update on real estate closing costs in Ecuador.

andres cordova

Dr. Andres Cordova

CLOSING COSTS IN ECUADOR

For those of you who are considering purchasing a property in Ecuador, I am providing an overview of the closing process and of the approximate closing costs involved.

Closing costs are relatively low in Ecuador, at about 1.5% to 2% of the purchase price. These expenses consider transfer taxes and notary, registrar and lawyer fees. There may be other expenses to consider such as travel costs.

A lawyer must be involved in the closing. Beyond possibly participating in negotiations on your behalf, she/he will need to source and review all pertinent documents, including a copy of the current property title, a certification from the real estate registry and the property taxes payment receipt for the year of the closing. Other documents may be required depending on the circumstances. For example, those to assess if a house or condo is up to date on HOA fees and the like.

The review of these documents will provide thorough information on the status of the property and will allow the lawyer to prepare the purchase deed and coordinate as needed. It is essential to verify that the property holds no limitations, claims or encumbrances.

Taxes must be paid before the closing takes place at the notary. It is customary in Ecuador for the buyer to bear with all closing costs with the exception of capital gains tax. In some cases buyer and seller can agree otherwise. In any such case I strongly recommend there be a record of any such agreement. It can be in an email for example. The deed will need to state who pays for expenses as per any such agreement, to avoid misunderstandings.

The taxes to be paid are “alcabalas” (sales tax) and capital gains tax (for urban properties). Sales tax will be of 1% of the recorded amount for the closing. Capital gains tax (Plusvalía in Spanish) will be 10% of the difference between the closing amount and the one recorded in the original title or the municipal assessment (which will be stated in the receipt for property taxes).

For capital gains tax there is a deduction of 5% for each year that’s passed between the issuance of the title for the seller and the current closing.

Expenses at the notary will vary in relation to the purchase price stated in the deed and to the number of documents and copies being processed. A closing on a $60,000 property will cost approximately $320, a $90,000 property $540 and a $150,000 one $800. These are ballpark figures.

Once the closing takes place the deed must be recorded in the real estate registry. Only then, after such deed has been so recorded, can ownership rights be fully had and exercised.

Real estate registries will also charge upon the stated amount for the transaction. A $100,000 closing may pay approximately $250 in some jurisdictions and up to $550 on others. Real estate registries are ascribed to each municipality and they, in turn, have the legal capacity to set registration fees. This is why there can be important variations.

It should be noted that senior citizens and any citizen with a disability can be subject to exceptions and reductions in fees and taxes. Payments in notaries can go down by 50%. The scope or pertinence of reduction in Municipal taxes will need to be assessed for each case.

Lawyer fees will vary in relation to the lawyer engaged and the scope of the needed services. A closing can be quite straightforward or may need substantial work. For example, there may be many sellers and coordination with each may need to ensue. The property may be mortgaged and a lifting of the mortgage may need to be arranged for at the time of the closing. Powers of attorney (POA) may need to be furnished. Repairs or improvements may need to be negotiated and formally agreed to. Etc.

Lawyer fees will likely start in the $400 – $600 range. I charge $600 in most cases. Lawyer fees should be clear and agreed beforehand.

There may be other expenses to consider, such as the issuance of POAs, etc. A POA may cost between $100 and $150 with notary costs included. A purchase agreement may be needed too, if the closing will take place at a future date and or upon certain conditions.

Closing costs in Ecuador are quite reasonable. Property taxes and HOA fees (where applicable) are so too.

If you have any questions regarding the process for the purchase of real estate in Ecuador or any Ecuador – related question for that matter, please let us know. We are here to help.

Stay safe,

Andrés Córdova

Spanish words:
Purchase – Compra
Taxes – Impuestos
Agreement – Acuerdo
Negotiation – Negociación
Discount – Descuento

Why You Can Learn Spanish in Three Days

You can learn Spanish in a day, or a week, month or any time frame that works for you.

I’m Gary Scott.  Over fifty years ago I started a business that has helped hundreds of thousands of subscribers learn about investing in Hong Kong (1960s and 1970s), Switzerland, London, Isle of Man (1970s and 1980s) and across Europe. My wife Merri and I took thousands on investing tours to these countries.

In the 1990s we began taking investors to Panama, Mexico, the Dominican Republic and Ecuador.  That’s when we realized an incredible need for an easy, super fast way to learn Spanish.  Our delegates were business people with hard schedules and tight deadlines.  They did not have months, or even weeks to learn a second language.

Plus, even though these delegates were successful international business people, most did not have degrees in grammar.  When it came to sentence structure, punctuation rules, parts of speech, morphology and especially derivation of verbs, they were at a loss. They wanted good basic ways to communicate in Spanish that worked and sounded eloquent, right now, without having to become educated in grammar.

Fortunately there is a scientific method of learning (called Super Learning) that was created and refined by a Soviet educational master, Georgi Lozanov.   Lozanov transformed the entire Soviet Union’s educational system to such a degree that this third world nation beat the USA into space.

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spanish

Merri teaching a Super Spanish course in Florida.

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“Most words in English that end in ION are almost identical, just pronounced differently. 

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I was amazed by this as I traveled back and forth from the USA to Ecuador.  The longer I was away from Ecuador… the better my Spanish became.  My second language was automatically improving.  The self improving feature comes because you learn to create Spanish sentences rather than remember them.

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Here are some testimonials from the course.

Here are a few quotes from delegates of the course.

One delegate from St. Louis wrote:  Hi Gary,  Just ended forty-five years in dentistry last week, and I’m on to a new career.  What is my new career?  Still formulating, but the eye -opening,mind expanding Super-Spanish course last weekend in St. Louis surely shows me the opportunity exists to expand my horizons.

Besides having a lot of nice people to learn our new language; the methods Merri and you developed proved to be just what you said they would be.  We all and I in particular relaxed our way to new learning.  I feel so very comfortable with the basis of my new language skills that I know I will be spitting out great Spanish sentences by the time I reach Ecuador in October.  Last year I spent six weeks in Ecuador and now I plan on conversing with the people.

Today’s excerpt of your newsletter really hit home. You do what you say you will. There are no surprises or hidden sales tricks. The only tricks are beneficial to our learning.  Thank you for a wonderful experience that I was quite unable to grasp how you would pull it off.  You did, however, and I look forward to other courses that you offer, and I have absolutely no doubt they also will work beneficially.  Best regards, Denis Molloy.

Another wrote about the Super Spanish course:   Buenos Dias, here is a testimonial for Super Thinking-Super Spanish.  Please feel free to use all or part in promotions for the course.  In addition, you may give my email address to any prospect “on the fence” about enrolling.  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish.  I had high expectations for the course and they were exceeded.

After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!

Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.  The foregoing benefits would have more than justified the time and money I invested in Super Spanish.  And learning some Spanish was not the most important benefit I got from the course.

Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

I’ve thought about the pace issue during the course.  One of the key elements Merri Scott designed into Super Spanish is placing the student in the optimal state for learning.  In class, the past three days, I’ve been re-introduced to guided journeys and introduced to the calming effects of Baroque music (www.sundaybaroque.org).  What a blessing! I’m inclined to make one or both a daily part of my life.   Rob Christi.  Cotacachi, Ecuador

Another attendee from a course wrote:   “I took this incredible class a few weeks ago, and I would like to tell anyone that is interested, that it is an amazing three days of learning with lots of laughs included. You leave everyday wanting to learn more and are so excited to do so.

“Other Spanish classes and tutoring made us feel like it would take forever to get to the point where we could put it into practice, but this method gave us a more fluent use for everyday life almost immediately AND the confidence to use it.  It is a fantastic way to show people how much they know and give confidence to learn and use Spanish creating a momentum.

“They made learning Spanish easy and fun in a very relaxed, comfortable atmosphere.  I would definitely recommend this course.  Even if you know some Spanish, this helps make it easier because of the less stress that no verb conjugations gives you.  This gives you more confidence in yourself to try and speak it more.

“I liked how simply the course was organized and the positive attitude about learning.  Thank you so much for helping me to learn Spanish!” Nadine Taylor

The ONLINE Super Spanish course has our, full satisfaction or money back, guarantee. Try Super Spanish for 60 days.  If not fully satisfied, simply let us know for a full refund. 

The course is available at the highly reduced price of $149, but in this special offer we are knocking another $70 from the price so you can start now for only $79.  

Learn Spanish online $79 - using coupon code SPANISH70 at checkout to immediately save $70 off the regular price of $149.

Still not sure?

Take just ten minutes to let me prove to you that this super fast way to gain the basics can let you can communicate in Spanish in an incredibly short time.

Gary

Gary-scott-super-spanish

Click here for FREE Super Spanish video.

The ONLINE Super Spanish course has our, full satisfaction or money back, guarantee. Try Super Spanish for 60 days.  If not fully satisfied, simply let us know for a full refund. 

The course is available at the highly reduced price of $149, but in this special offer we are knocking another $70 from the price so you can start now for only $79.  

Learn Spanish online $79 - using coupon code SPANISH70 at checkout to immediately save $70 off the regular price of $149.