Co-Ownership in Ecuador: Can a Property Be Purchased by Two or More Unmarried Individuals?

Yes, it is legally permissible and common for two or more unmarried individuals to purchase property in Ecuador. However, this legal structure, known as copropiedad or, more precisely, proindiviso, carries significant legal implications that must be managed with precision. Failing to do so is one of the most common and costly mistakes foreign buyers make.

Understanding Proindiviso: The Core of Co-Ownership

When multiple unmarried individuals acquire a property, they enter a state of proindiviso. This legal term from the Ecuadorian Civil Code means that each person owns an undivided fractional interest in the entire property. It is critical to understand this: you do not own a specific northern half or a designated plot. You own a percentage of the whole, inseparable from the other owners' shares until a formal, legally executed partition occurs.

This distinction is the root of most co-ownership disputes. Without explicit legal agreements, this arrangement can lead to significant conflict, operational paralysis, and even the forced judicial sale of the property.

The Legal Pathway: From Promise to Public Deed

The property acquisition process itself contains a critical distinction often misunderstood by foreign buyers:

Promesa de Compraventa (Promise to Buy-Sell Agreement): This is a preliminary, legally binding contract that obligates the parties to execute the final sale. It locks in the price and terms and is often accompanied by a down payment. However, a promesa absolutely does not transfer ownership. It is merely a contractual commitment to do so in the future.
Escritura Pública de Compraventa (Public Deed of Sale): This is the definitive legal instrument that transfers title. It must be signed before an Ecuadorian Notary Public and, crucially, registered with the Registro de la Propiedad (Property Registry) of the specific cantón (municipality) where the property is located. Ownership is only legally perfected upon this registration.

For co-owners, the Escritura Pública is paramount. It must explicitly name all individual purchasers, their official identification numbers, marital status, and, most importantly, the exact percentage or fraction of the property each co-owner is acquiring. A vague deed is a future lawsuit.

Essential Due Diligence: Beyond the Basics

Standard due diligence is vital, but for a secure proindiviso purchase, you must go deeper. My firm treats these as non-negotiable steps to protect our clients.

Obtain a Certificado de Gravámenes y de Bienes Inmuebles: This is the single most important document in your due diligence. It is issued by the Registro de la Propiedad of the relevant cantón. This certificate provides the complete legal history (historia de dominio) of the property for the last 15 years, confirming the current legal owner and, critically, revealing any existing mortgages (hipotecas), liens (gravámenes), court-ordered prohibitions on sale (prohibiciones de enajenar), or other encumbrances. A "clean" certificate is the foundation of a secure purchase.
Municipal Verification (GAD Municipal): Before any funds are transferred, you must verify the following with the local municipal government:
- Zoning and Land Use: Confirm that your intended use (residential, agricultural, commercial) is permitted.
- Property Tax Status: Obtain a certificate of no outstanding property taxes (Certificado de no adeudar al Municipio). Any debts transfer with the property.
- Cadastral Certificate (Ficha Catastral): This document verifies the property's official boundaries, size, and valuation for tax purposes. Discrepancies between this, the deed, and the physical reality are a major red flag.
Water Rights Verification (SENAGUA): For rural and agricultural land, this is a deal-breaker. Water is a public resource in Ecuador, managed by the Secretaría del Agua (SENAGUA).
- Do not rely on a seller's verbal assurances. You must verify if the property has a registered water use right (derecho de aprovechamiento de agua) in the Registro Público del Agua (RPA).
- Hyper-Specific Detail: Obtaining a new water use right is a complex and protracted administrative process that can easily take over a year and is not guaranteed. It involves technical studies, public notices, and potential opposition from neighbors. Purchasing a rural property without a pre-existing, verifiable water right is an extreme risk.
Coastal Property Regulations: If purchasing within 5 kilometers of the shoreline, you are subject to specific national laws.
- Hyper-Specific Detail: The Ley Orgánica de Ordenamiento Territorial, Uso y Gestión del Suelo (LOOTUGS) and related regulations establish an absolute prohibition on any private construction within the 50-meter franja de playa y bahía measured inland from the high tide line (línea de máxima marea). This area is considered a state-owned public good (bien nacional de uso público) and is non-negotiable. Any existing structures may be illegal, and any promise of future building rights within this zone is void.

The Co-Ownership Agreement: Your Most Critical Protection

While the Escritura records ownership percentages, it does not govern the relationship between the co-owners. Relying solely on the deed is a recipe for disaster. A separate, comprehensive Co-Ownership Agreement (Convenio de Copropiedad), ideally notarized, is essential. This document is your internal operating manual and should be drafted by your attorney to explicitly define:

Financial Contributions: Initial purchase contributions and future capital calls for improvements.
Management and Maintenance: Who is responsible for day-to-day management, and how will costs for taxes, insurance, and repairs be divided and paid?
Use and Occupancy: Rules for personal use, guest policies, and potential rental income distribution.
Decision-Making: Establish voting thresholds. Require unanimous consent for major decisions like selling the property or taking on a mortgage, but allow a majority vote for routine maintenance.
Exit Strategy & Right of First Refusal: What happens if one partner wants to sell? The agreement should grant the remaining co-owners the right of first refusal to purchase the exiting partner's share at a pre-determined valuation method (e.g., certified appraisal).
Dispute Resolution: Mandate mediation before any party can initiate legal action.
Incapacity or Death: Specify what happens to a co-owner's share upon their death, preventing unintended inheritance complications.

⚠️ Title Risk Warning: The Unseen Legal Minefield of Proindiviso

The greatest risk in unmarried co-ownership is the inherent instability of the proindiviso state. Hyper-Specific Detail: Under Article 1410 of the Ecuadorian Civil Code, no co-owner is obligated to remain in co-ownership. This means any single co-owner, at any time and for any reason, can legally demand the termination of the co-ownership by filing a partition lawsuit (juicio de partición). If the property cannot be physically divided equitably (which is often the case with buildings or small parcels), the court's only recourse is to order a forced public auction (venta en pública subasta). This can result in the property being sold for less than market value, with the proceeds divided after substantial legal costs are deducted. A well-drafted co-ownership agreement is your primary defense against this catastrophic outcome.

Conclusion: Secure Your Investment Through Legal Precision

Purchasing property in Ecuador as unmarried co-owners is a perfectly viable and rewarding endeavor, provided you approach it with the legal seriousness it demands. The complexities of proindiviso, the nuances of the property registration system, and the critical importance of a bespoke co-ownership agreement cannot be overstated.

Investing in expert legal counsel from a certified specialist is not an expense; it is the most critical investment you can make in safeguarding your title, your financial stake, and your relationships. By establishing a clear, comprehensive legal framework from day one, you transform a potentially risky venture into a secure and enjoyable asset.

Ready to secure your Ecuadorian property with professional confidence? Book a one-on-one due diligence consultation with our team of licensed Ecuadorian real estate specialists today.