[BUYING AND SELLING REAL ESTATE IN ECUADOR]
OWNERSHIP A. Property Insurance B. Real Estate Taxes (BOTH ITEMS RATHER LOW).
1. Double taxation for corporation. 2. Two-thirds or as statutory shareholder vote required to approve sale of all or substantially all assets. 3. Dissolution by Superintendence of Companies – but reinstatement possible. Assets can be sold after dissolution during liquidation. CLOSING COSTS/ADJUSTMENTS A. Buyer pays the transfer taxes due at the time of the definitive Purchase-Sale Contract. As stated before, Capital Gain is on seller´s account. B. Adjustments are made for rents; buyer has the legal right to file court petition for termination of prior rent contracts.
Real estate is a good, permanently on-going business in Ecuador, despite the normal lowering of productive activities worldwide. IN ORDER TO REACTIVATE THE REAL ESTATE BUSINESSES, the Municipality of Guayaquil – the main commercial city of Ecuador- and some other municipalities of big and medium sized cities; have enacted rules exempting all real estate from property tax for the next five years after the purchases. In order to foster real estate sell-buying activities for the establishing of new businesses; like stores, cafeterias, restaurants, etc.
OTHER CLOSING DOCUMENTS Buyer has to obtain a municipal lien certificate from the Town/City where the premises are located stating the current status of real property, taxes payments and balances due. And, if Horizontal Property, a certificate of the Administration on payment of condominium aliquots. If Buyer or Seller are corporations it is necessary to also annex copy of the shareholders’ minutes authorizing the sale if requested by statutes and copy of the document of proof of being the authorized company officer to sign on behalf of the company. IX. RECORDING REAL ESTATE DOCUMENTS A. Title Documents are recorded on a Canton (city) basis in Ecuador. Notary Publics can be from any city, not necessarily from the city where the estate is located. Recording procedures are very well organized and fast in most cities.
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter