A Legal Expert's Guide to Securing Utilities for Raw Land in Ecuador

Purchasing raw land in Ecuador is an investment in a future you intend to build. However, the vision of a dream home can collapse without access to fundamental services. As a licensed Ecuadorian Real Estate Attorney specializing in land acquisition, my professional obligation is to protect my clients from foreseeable risks. The most common and costly risks often lie not in the land itself, but in the unverified assumptions about access to electricity, water, and internet.

This guide provides a tactical roadmap for navigating utility connections, focusing on the critical legal due diligence required to safeguard your investment and ensure your property is viable.

The Indisputable Foundation: Perfecting Your Legal Title

Before a single utility application is filed, your ownership must be legally unassailable. Let me be unequivocal: without a perfected title, any investment in infrastructure is built on sand.

First, you must understand the difference between a promesa de compraventa (promissory purchase agreement) and the definitive escritura pública de compraventa (public deed of sale). The promesa is a binding contract to execute a sale; it does not transfer ownership. Only the escritura, properly signed before a Notary and registered at the Registro de la Propiedad (Property Registry) of the specific cantón where the land is located, confers legal ownership.

Your due diligence must include obtaining an updated Certificado de Gravámenes y Limitaciones de Dominio (Certificate of Liens and Domain Limitations) from this registry. This is the only official document that confirms the property is free of mortgages, liens, lawsuits, and other encumbrances.

Hyper-Specific Detail #1: The Proindiviso Trap. A significant risk, especially in rural areas, is purchasing land held in proindiviso (undivided co-ownership). This means you are buying derechos y acciones (rights and actions, or a percentage share) of a larger parent property, not a physically delimited plot (cuerpo cierto). Connecting utilities to such a property can be a legal nightmare, as it may require consent from all co-owners and can be nearly impossible if the shares are not legally partitioned. Never proceed without confirming your purchase is for a fully independent, registered property.

Electricity: Connecting to the National Grid

Connecting to the national power grid is managed by regional public distributors, most commonly the Corporación Nacional de Electricidad (CNEL EP). The process is bureaucratic and requires precision.

The Official Process:

1. Application & Feasibility Study (Solicitud y Factibilidad): You must initiate a formal application with the local CNEL EP office. This requires your cédula (for residents), passport and RUC (tax ID for non-residents), and a copy of the registered escritura pública. CNEL will then conduct a technical feasibility study to determine the cost and requirements for extending service to your property line.
2. Quotation & Infrastructure Costs: Based on the study, CNEL will issue a formal quote. Warning: For remote properties, this can be a five-figure sum, covering the installation of concrete poles (postes), transformers (transformadores), and high-tension cables. Scrutinize this quote. Ensure it details all costs and timelines.
3. Easement (Servidumbre) Verification: If the new power line must cross a neighbor's land, a legally constituted and registered easement is mandatory. Do not rely on a verbal agreement. An unregistered easement is unenforceable and can be revoked by the neighbor or a future owner of that property, effectively cutting off your power.
4. Installation and Inspection: Upon payment, CNEL schedules the installation. A final inspection ensures compliance with safety and technical standards before a meter (medidor) is installed and the service is activated.

Water: The Most Heavily Regulated Resource

Securing a legal water source is arguably the most complex aspect of developing raw land. All water resources in Ecuador are public property, governed by the strict Ley Orgánica de Recursos Hídricos, Usos y Aprovechamiento del Agua (Organic Law of Water Resources, Uses, and Utilization). Unauthorized water use carries severe penalties.

Municipal Water: If available, this is the most straightforward option. Apply at the municipal water company (Empresa Municipal de Agua Potable) with your property deed.

Well Water (Pozo Profundo): This is common in rural areas but is a multi-stage legal process managed by the Ministerio del Ambiente, Agua y Transición Ecológica (MAATE), often through its local administrative units.

Hyper-Specific Detail #2: The Two-Permit Mandate for Wells. Many investors mistakenly believe that drilling a well grants them the right to use the water. This is false. You must secure two distinct authorizations:

1. Authorization for Exploration/Perforation (Autorización de Perforación): Before any drilling begins, you must apply for this permit. The application, submitted to the local Demarcación Hidrográfica (Hydrographic Demarcation office), often requires a technical hydrogeological study conducted by a certified engineer to prove the well will not negatively impact the aquifer or nearby water sources. Drilling without this permit is illegal and will result in fines and an order to cap the well.
2. Authorization for Water Use (Autorización de Aprovechamiento del Agua): After the well is successfully drilled, you must apply for the right to use the water. This authorization specifies the maximum flow rate and purpose (e.g., domestic, irrigation). For small-scale domestic use, this is an Autorización. For larger, commercial, or agricultural uses, it becomes a more complex Concesión (Concession). Without this second authorization, your water source remains legally unsecured.

Natural Sources (Rivers, Springs): Any diversion of water from a surface source requires an explicit Water Use Authorization from MAATE. The state heavily prioritizes human consumption and ecological balance, making these permits difficult to obtain. "Grandfathered" or informal water rights are often legally invalid and should never be relied upon.

Internet & Telecommunications: The Final Connection

While less legally complex, internet access is a critical lifestyle and business consideration.

1. Provider Assessment: Major providers include CNT (state-owned), Claro, Movistar, and fiber-optic specialists like Netlife. Availability is highly localized.
2. On-Site Verification (Inspección Técnica): Do not trust online service maps. Insist that a provider send a technician to your property to confirm signal strength or the physical proximity of a fiber-optic or copper connection point.
3. Alternative Solutions: In remote areas, satellite internet (e.g., Starlink, HughesNet) or cellular-based routers are often the only viable options. Budget accordingly, as these services carry higher installation and monthly costs.

Hyper-Specific Detail #3: Coastal Construction Setbacks. If your property is near the coast, be aware of specific regulations. While not a utility, it directly impacts where you can build and thus where utilities can be installed. The Ley de Gestión y Uso de Suelo and various municipal ordinances establish construction setbacks. Generally, there is a strict no-build zone within the first 200 meters of the high-tide line, with further restrictions often extending beyond. Verify these specific cantonal regulations before planning any construction.

Attorney's Due Diligence Checklist for Utilities

• [ ] Title Perfection: Possess the escritura pública de compraventa registered in your name at the Registro de la Propiedad for the correct cantón.
• [ ] Lien Certificate: Obtain a current Certificado de Gravámenes y Limitaciones de Dominio confirming a clean title.
• [ ] Ownership Status: Confirm the property is a cuerpo cierto and not proindiviso (rights and actions).
• [ ] Electricity Feasibility: Secure a written, itemized quote and feasibility confirmation from the regional electricity provider (e.g., CNEL EP).
• [ ] Legal Easements: Verify any required utility easements (servidumbres) are legally drafted and registered against the neighbor's property title.
• [ ] Water Source Verification:
  • For wells, confirm the two-permit process with MAATE: obtain the drilling permit before drilling and the water use authorization after.
  • For municipal water, obtain written confirmation of service availability and connection cost.
• [ ] Internet Survey: Conduct an on-site technical inspection with potential ISPs to confirm service type and quality.
• [ ] Zoning and Setbacks: Cross-reference utility plans with municipal zoning laws and specific regulations (e.g., coastal setbacks) to ensure compliance.

⚠️ Attorney's Final Warning: The Devaluation Risk of Unsecured Utilities

The greatest financial risk you face is purchasing land that can never be legally developed. Physical proximity to a power line or river means nothing without legal entitlement. A property without a legally secured water source or a feasible, affordable electrical connection is functionally sterile. It cannot be legally built upon, financed, or easily sold. Bypassing these bureaucratic but essential due diligence steps doesn't save time or money; it transfers immense risk directly onto you, the investor. Prioritize legal certainty above all else.