Final Review: A 25-Point Checklist for Your Final Investment Decision on Ecuadorian Land

Acquiring land in Ecuador, particularly in its diverse rural landscapes, presents a compelling opportunity. However, as a practicing Ecuadorian Real Estate Attorney, I have represented numerous foreign clients whose dream investments turned into protracted legal nightmares due to overlooked details. The path to secure ownership is governed by a civil law system that prizes formal, registered documentation above all else. Generic advice is insufficient; you need a precise, legally-grounded strategy.

This checklist is not a substitute for qualified legal counsel; it is the framework for our due diligence process. It is designed to expose the critical vulnerabilities where foreign buyers, unfamiliar with Ecuador's intricate legal and cadastral systems, most often falter. Before you sign any document or transfer substantial funds, this systematic review is your primary defense against financial loss and title disputes.

The Bedrock of Ownership: Key Legal Instruments

Understanding the hierarchy of legal documents is paramount. In Ecuador, a handshake or a private agreement holds no legal weight in transferring real property.

First, distinguish between a Promesa de Compraventa (Promise to Buy and Sell) and the definitive Escritura Pública de Compraventa (Public Deed of Sale). The Promesa is a notarized preliminary contract that obligates the parties to complete the sale at a future date, often used to secure a property while due diligence is performed. It is legally binding and should include a penalty clause (cláusula penal) for non-compliance, but it does not transfer ownership.

True ownership is transferred only via the Escritura Pública, executed before a Notary Public (Notario). Yet, even this is not the final step. Legal ownership is perfected—and made enforceable against the world—only when this Escritura is inscribed in the public ledger of the Registro de la Propiedad (Property Registry) for the canton where the land is located. This inscription is your ultimate proof of title.

Your Final Investment Decision: The 25-Point Checklist

This checklist is divided into key areas to ensure a systematic and thorough review.

I. Legal Title & Ownership Integrity

1. Seller’s Legal Capacity: Confirm the seller's legal right to sell. For an individual, their cédula (national ID) must match the registered owner. For a company, obtain a recent Nombramiento (Appointment of Legal Representative) registered with the Mercantile Registry to confirm who has signing authority.
2. Original Title Deed (Escritura Matriz): Obtain a certified copy (copia certificada) of the seller's original deed. This traces the chain of title (tradición) and confirms how the seller legitimately acquired the property.
3. Current Certificado de Gravámenes y Propiedad: This is your most critical document. It must be issued by the local Registro de la Propiedad within the last 30 days. It must list the seller as the sole owner (único dueño) and explicitly state "NO TENER GRAVAMEN ALGUNO" (has no encumbrances). Expert Detail: Cross-reference the unique 16-digit cadastral code (clave catastral) on this certificate with the municipal tax records and the deed itself. Any discrepancy is a major red flag that could indicate a mapping error or a fraudulent filing.
4. Impuesto Predial (Property Tax) Clearance: Secure the Certificado de No Adeudar al Municipio for the current fiscal year. Unpaid taxes, including the special betterment levy (contribución especial de mejoras), become a lien on the property that you inherit.
5. Catastro Alignment & Physical Survey: Commission an updated survey (levantamiento planimétrico) from a licensed geomatics engineer. This plan must be officially registered and approved by the municipal planning department (Dirección de Planificación). It is imperative to physically walk the property boundaries with the surveyor to ensure the official map aligns with the physical reality and existing boundary markers (mojones).
6. Possession and Occupation: Confirm the seller is in peaceful and undisputed possession. Discreetly interview neighbors about any historical boundary disputes or informal claims by third parties (invasores). These "off-the-books" issues can lead to years of litigation.
7. Proindiviso Status (Undivided Co-ownership): If the title shows ownership is in proindiviso, you are buying "rights and actions" (derechos y acciones), not a specific, demarcated plot. Expert Detail: This is one of the highest-risk scenarios. Under the Ecuadorian Civil Code, any single co-owner can legally initiate a partition lawsuit (juicio de partición), which often results in a court-ordered public auction of the entire property if the owners cannot agree on a physical division.
8. Inheritance Issues (Posesión Efectiva): If the seller inherited the property, you must verify that the Posesión Efectiva (a judicial or notarial act recognizing the heirs) has been granted and duly registered in the Registro de la Propiedad. All legally recognized heirs must sign the new deed.

II. Land Use, Zoning & Physical Restrictions

9. Municipal Zoning Regulations (Informe de Regulación Municipal - IRM): Do not rely on a simple Certificado de Uso de Suelo. Request the more detailed IRM. This document specifies permitted land uses (residential, agricultural, etc.), building parameters (setbacks, height limits, lot coverage), and any planned public works that may affect the property.
10. Coastal & Waterway Restrictions: Expert Detail: Property within 5 kilometers of the shoreline is subject to special national security oversight. More critically, the Código Civil establishes an 8-meter wide non-buildable public access and surveillance zone (zona de servidumbre) measured from the high tide line along the coast and from the edge of rivers. Furthermore, the Ley Orgánica de Ordenamiento Territorial, Uso y Gestión de Suelo (LOOTUGS) empowers municipalities to enforce even stricter coastal protection setbacks.
11. Environmental Protections: Verify if the property falls within the National System of Protected Areas (SNAP), a protective forest (Bosque Protector), or contains wetlands or critical watersheds. Development in these areas is either prohibited or requires a complex and costly environmental license from the Ministry of Environment.
12. Road Access (Servidumbre de Tránsito): Confirm legal, registered road access. If access is via a private road, a formal, notarized, and registered right-of-way easement (servidumbre de tránsito) must be in place. A verbal agreement is legally worthless and can be revoked at any time.
13. Utilities Availability: Obtain written confirmation from the local electricity corporation (e.g., CNEL) and water utility (e.g., EPMAP) regarding the feasibility, process, and cost of connecting new service. The cost to extend infrastructure to a rural lot can easily exceed tens of thousands of dollars.

III. Water Rights & Environmental Compliance

14. Legal Water Rights (Autorización de Uso y Aprovechamiento de Agua): Ecuador's water is a public resource controlled by the state. Access for any purpose other than direct human consumption requires a permit. Expert Detail: The water authority is no longer just SENAGUA; it is now integrated into the Ministerio del Ambiente, Agua y Transición Ecológica (MAATE). The bureaucratic process to obtain or transfer a water use permit is arduous. It requires submitting a technical report (Memoria Técnica) prepared by an accredited environmental engineer, followed by a field inspection from MAATE officials to verify the water source (fuente) and measure the flow (caudal). Expect this process to take a minimum of 8-12 months, and often longer.
15. MAATE Registration: Verify the seller’s water rights are currently registered and in good standing with MAATE. An unregistered water intake is illegal and subject to fines and immediate suspension.
16. Water Source and Infrastructure: Physically inspect the water source and the entire delivery system (canals, pipes, pumps). In community irrigation systems, obtain a certificate from the local water board (Junta de Agua) confirming the seller is a member in good standing with all fees paid.

IV. Financial & Transactional Security

17. Purchase Price and Payment Terms: The Escritura must state the real price. Declaring a lower value to evade taxes is illegal and creates future capital gains tax liabilities for you.
18. Escrow or Attorney Trust Account: For any significant down payment before closing, insist on using a third-party escrow service or your attorney's client trust account (cuenta de cliente). Never transfer large sums directly to a seller before the Escritura is signed.
19. Notary Public Selection: You have the right to choose the Notary. Do not passively accept the seller's or agent's choice. Your attorney should recommend a Notary known for their diligence and integrity.
20. Transfer Taxes and Fees: Accurately budget for all costs: municipal transfer tax (alcabala), capital gains tax (plusvalía which is the seller's obligation but must be paid for the transaction to proceed), provincial council fees, notary fees, and registry inscription fees. These typically total 3-5% of the property value.
21. Declaration of Lawful Funds: Be prepared to provide a sworn declaration (declaración juramentada) and supporting documentation proving the legal origin of your funds, as required by Ecuador’s anti-money laundering unit (UAFE).

V. Physical & Practical Verification

22. Risk Assessment: Is the property in a known flood zone, on an unstable slope, or near a volcano or seismic fault line? Consult municipal risk maps (mapas de riesgo) and the Secretaría de Gestión de Riesgos.
23. Physical Inspection: Conduct a thorough personal inspection of the land, infrastructure, and any existing structures. Look for signs of soil erosion, pests, or structural defects.
24. Neighbor Relations: Your attorney or a trusted local contact should discreetly inquire about the seller and any ongoing disputes with neighbors. Good community relations are invaluable in rural Ecuador.
25. Legal Counsel Engagement: Have you engaged your own independent, qualified Ecuadorian attorney specializing in real estate law? Their sole fiduciary duty is to protect your interests. This is the single most important decision you will make.

⚠️ Title Risk Warning: Critical Errors Foreign Buyers Make

• Relying on a Private Sales Contract: Believing a simple signed document is sufficient, without executing and registering a public Escritura.
• Buying "Possessory Rights": Mistaking long-term occupation for legal title. Without a registered deed, possessory rights are weak and require a lengthy, uncertain, and expensive judicial process (prescripción adquisitiva de dominio) to formalize.
• Ignoring Proindiviso Dangers: Buying a share of land without understanding that you lack exclusive control and can be forced into a public auction by a single co-owner.
• Assuming Water is Included: Discovering after purchase that the water source they rely on is unregistered and can be legally cut off by MAATE or claimed by a neighbor with registered rights.
• Accepting Seller's Assurances: Taking verbal promises about boundaries, permits, or access as fact instead of demanding official, verifiable documents for every single claim.

Conclusion

This 25-point checklist is your blueprint for a secure investment. It is the practical application of years spent defending clients from the consequences of incomplete due diligence. By methodically verifying each item with the guidance of your own legal counsel, you transform a potentially risky purchase into a sound, legally defensible acquisition. Your goal is not merely to buy land; it is to secure clear, unassailable title.

Ready to secure your Ecuadorian land investment with professional diligence? Don't leave your future to chance. Book a one-on-one consultation with a licensed Ecuadorian Real Estate Attorney and Land Specialist today.