593 99 474 8668



Francisco Tamariz y Abelardo J. Andrade

Cuenca, Ecuador

9 am to 6 pm

Monday to Saturday

The Purchase Process

One great thing about Cuenca is the security one has when buying a property. There is one central Property Registry office which holds all the deeds for properties located in and around the city of Cuenca. That same office also holds all the records for liens and mortgages. The Property Registry office is the ultimate authority when it comes to anything to do with titles, liens, and mortgages and none are valid until and unless they are registered there. Lawyers and Real Estate agents are able to obtain a detailed Title Report showing the current legal status of the property.

The first step in the purchase process is to sign a notarized Purchase Agreement with the seller. The Purchase Agreement is legally binding and prevents the seller from raising the price on you or selling the place out from under you while you are waiting for the results of the Title Report. The Purchase Agreement should contain all agreements made between you and the seller, things such as timing of payments, items included in the sale, etc. Earnest money is paid upon the signing of the Purchase Agreement. The tradition in Ecuador is that the earnest money, normally 5-10% of the purchase price, is given to the seller to hold as a down payment. In about 60% of cases we have been able to convince sellers to let the earnest money be put into Escrow.

Once the due diligence has been completed and you have gotten the remaining balance of the purchase money together then it is time to proceed to the signing of the Final Deed. In order to become the legal owner the deed must be registered in the Property Registry office after signing.

Who pays us?

We, like most local Realtors, serve as transactional agents who introduce buyers to sellers and help them to agree on price and terms. In Ecuador Real Estate agents get paid their commission by the seller, not the buyer. We charge the seller Ecuador's standard commission which is 3% of the final negotiated sales price.

Getting your money into Ecuador

The most common way a purchase is done is by wiring money directly into the seller's bank account with an international wire transfer. Contrary to what many people assume, opening a bank account in Ecuador is not necessary in order to buy property. It is a good idea to open a local bank account at some point so that you can set up automatic bill pay for utilities and services such as Cable or Direct TV and high-speed Internet. It would be good to bring a few checks with you; foreign checks can be used here but they have to be deposited as they take about two weeks to clear. A foreign check can often be used to make a deposit on a property or for funding Escrow. ATM machines in Cuenca allow you to take out up to $600 per day from foreign debit cards.

How long does it take to buy?

Although the least amount of time one of our clients has ever spent in Cuenca to buy was 3 days, the theoretical minimum time needed would be only 2 days. The purchase process takes a lot longer than that but by giving your lawyer power of attorney to deal with the remaining steps you only need to stay for as much time as it takes to select the property and negotiate the terms of the sale. The purchase process can take as little as 21 business days assuming your lawyer keeps the papers moving through the system as fast as possible. In reality you should probably figure that it will take about a month and a half to get the property title fully registered in your name.

Closing costs

In Ecuador, you as a buyer will be responsible for taking care of the closing costs, which usually amount to less than 2 percent of the purchase price. That does not include what you pay your lawyer for legal services. Rates vary from lawyer to lawyer but seem to average at around $800 or so. If the seller wants to hire their own lawyer, then they can/will do so at their expense, as it should be your own lawyer who drafts the documents for your benefit as the buyer, thereby best/most protecting you personally.

Tour Fee

We charge a "tour fee" of $12.50 per hour for showing properties, which is recorded daily and will be refunded to you in full when you purchase a property through us. If you do not buy a property through us then that money will not be refunded.

For those who have already made the decision to invest in Ecuador the only initial resistance to the hourly charge is because they have not done something like it before. After taking a moment to think about it most people are smart enough to realize that we are not charging an hourly fee on top of our commission, since the hourly fees are refunded.

One of the key distinguishing characteristics that set us apart from other Real Estate agencies is that we sit down with you before hand to go over your needs in detail so you don't wast time and money going around looking at properties are not the right fit for you.

Property Tax

Property taxes in Cuenca are so low as to almost be beyond belief; all properties featured on this website have property tax rates of less than $300 a year. Property taxes for a given year are assessed on the first business day of the year and can be paid at any time during the year.


In Ecuador the vast majority of all purchases are made with cash. Financing in Ecuador is hard to come by and very expensive even if you qualify for it. Other than the rare case of owner or builder financing, we can only work with buyers who can come up with the entire purchase price in cash.

Investor Visa in Real Estate Property

Qualifying for an Investor Visa in Real Estate Property (often referred to as Temporary Residency and/or Permanent Residency) allows you to stay in Ecuador indefinitely. It requires you owning any property in Ecuador whose tax assessed value is at least $39,400, plus an additional $500 in said tax assessed value more that is relative to your spouse and any other familial dependents moving to Ecuador with you. In Cuenca, property tax assessed values are usually considerably lower than actual market values. In general, you need to spend at least $60,000-80,000 on your property in order for it to have a high enough tax evaluation to qualify you for an Investor Visa in Real Estate Property. Rural properties have even lower tax assessed values and many won't work as a qualifying investment for Visa purposes, though this is simply a function of how valuable the property is and/or the given possibility of raising the property's tax assessed value with the applicable Municipality that receives the annual property taxes with respect to the property. Be sure to let us know if you are planning on using a property as a qualifying investment for an Investor Visa in Real Estate Property, so that we can check the Municipality's tax records before you buy your property.

Next Steps

It's best for you to make an appointment with us as soon as have your plane ticket and know your exact arrival date. Travel can be exhausting so scheduling an appointment for your second day in Cuenca is ideal as it allows you to get some sleep and recharge first. We do not work like traditional Realtors who run around frantically juggling incoming calls and barely listening to a word you say. We will pay attention to what you have to say and try to understand where you are coming from so that we can meet your needs. Our goal is for you to end up with several good options to choose from that you would be proud to call home. By scheduling our time in advance you ensure that we will be able to get immediate access to the properties you want to see.

Additional Info

One of the best sources for more information on the reality of Real Estate in Cuenca is the articles we that we have online.

If you need more ammunition to convince your family or spouse that looking oversees to retire or purchase a second home makes sense, then we have an article called "Why Cuenca". In addition if you are from the U.S. you may also want to check out the website www.fleeamerica.com

For more information about us see the contact info page or about us page on this website.

Additional information regarding Real Estate related referrals such as Lawyers, Surveyors, Builders, etc will be provided as needed once we begin working with you on your property search.

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