Risks of Owning Land in Ecuador

[@holisticlee5377]

Me and my partner just bought a farm in south east ecuador, and we absolutely love it, did take us 6 months of extreme bureauCRAZY and a lot of properties we wanted to buy but we couldnt because of leans, incorrect paper/no titles and being too close to the border of peru... but alas, we finally did it! We bought the finca about a week ago and we are over the moon, got it all done legally and properly and had the property surveyed (as it had the old map that you mentioned) ... We are originally from south africa and had a farm there and the risk of it getting taken away was too stressful, and we feel a lot safer and accepted here than in south africa, we are super happy with our decision of buying and moving here and we even get to preserve 20+ hectares of cloud forest, which was a dream of ours from the get go... thank you for your thorough video, maybe we run into you oneday! haha

[@PeterCsere]

I'm glad you got all the legal stuff sorted out! FYI you can still buy a property with a lien, if you make a "promise of sale contract" that specifies that you make a down payment, the buyer uses that to pay off the debt and have the lien removed within X days, and then sells the property to you. If the selller does not do this, they are legally required to pay a fine (that you set in the contract, like $5k for example) and also return the entire down payment. If they do not do this, the courts can take and sell their other properties to pay you back, or just award you their other properties. For this reason it is only worth it to engage in this type of sale with a seller who has other assets in the country. I've heard about the situation in South Africa, it is sad that politicians nowadays can still take such a strong position AGAINST private property rights. Foreign investors will all but lose interest in South Africa if this kind of legal precedent continues. Enjoy your cloud forest. Watch out for those Andean spectacled bears ;-)

[@holisticlee5377]

@@PeterCsere yeah the promise of sale seemed a little sketchy because the owner had like 14 children spread across the whole of ecuador and was basically on his death bed.. so we were advised against it, glad we did though because we found the perfect property for us.

[@PeterCsere]

@@holisticlee5377 Yeah in that case it was a good idea to avoid the situation

[@holisticlee5377]

@@PeterCsere the seller acctually warned us against buying at that time because he knew he was not there for much longer, but his property will sell quickly, it is beautiful and in a usually quite pricy area.

[@jake.presents]

The Online Herbalist : that sounds amazing! Do you have a video of the size of the finca, were there buildings, water sources or agriculture? 😀

[@JS-jh4cy]

The risks of owning land in Canada is the damn high taxes

[@Jahmastasunherbalist]

Very thorough. I have nothing to add.

[@luoma9040]

The biggest risk of buying a property in Ecuador (Coast region specially) are invasions. People just come to your property and install them selves. That is not common in the highlands and amazon but it can happen.

[@religion-free]

try that in America you get shot. so you can't kill trespassers in Ecuador?

[@luoma9040]

@@religion-free you can but you will go to jail or get shot. I heard in places like California you could actually tresspass and play victim in front of a judge😂

[@surfviewgardens2396]

Can you please explain the unusual (non-USA) escrow process in Ecuador? And explain how the sales agent typically is both the seller broker and buyer broker, and that most sales are exclusive listings making sure they handle both sides. In the USA the buyer and selling broker share the 6%. When I was in the process of buying land, the agent wanted 10% down and for me to send half to him and half to his partner - with no legitimate escrow service involved. What it seemed like was that the agent was more of an entrepreneur where for example (not actual), he was going to pay the owner $80,000 and he and his partner were going to split the difference between that and the $100,000 price. Totally unlike the USA, where less closing costs and the 6%, the owner keeps the remaining. So, please explain what is "normal" regarding the sales agent, the owner, reasonable down payments, escrow, etc. Thanks for the very helpful video.

[@PeterCsere]

There is no "normal" in Ecuador. For most of the past there was not even a license for real estate agents. Now I believe there is, it's a short course that costs a lot of money and most people acting as brokers don't bother. There are a lot of people trying to re-sell properties for significantly higher prices without actually buying it first, yes. I've seen this a lot, especially in places like Vilcabamba. The vast majority of real estate transactions in Ecuador (among Ecuadorians, and even between foreigners and Ecuadorians) seem to be directly between the seller and the buyer, with no broker. Escrow is often not used, however smart people will use a notarized promise of sale contract to give them legal security in case the seller does not sign the title over. Escrow is available but there is a general distrust of lawyers/institutions (and for good reason) so some people prefer to trust the seller rather than an attorney or escrow company. Also, many rural land sellers are poor farmers with little education and would not trust or even understand the escrow process. Obviously it's better to use agents and escrow, I'm just explaining how things currently tend to be. Foreigners are more likely to go through real estate websites and involve a seller's agent. The commission may not be a standard 3% on the seller's side; often they will negotiate something specific with the agent. In general the country is moving in a more organized direction with more real estate agencies popping up.

[@surfviewgardens2396]

@@PeterCsere Thanks, Peter. It seems miraculous that so many properties sell in Ecuador with title transferring considering the lack of escrow, "independent" realtors who typically handle both sides of the sale, and the questionable practice of the seller's agent pocketing a lot more than 6% out of the deal. I have also seen some situations where the Ecuadorian property owner has either no price listed for the property or one that is fictitious. For the latter case, an Ecuadorian seller had 250 acres for sale for $111,111 (in OLX - the Ecuadorian Craigslist). As soon as I showed interest, he upped the price to $20 million. (It wasn't even worth $111,111 due to it being 97% mountains.) I know you say that a lot of them are uneducated, but, it would be nice to see someone create a Blockchain property sale contract and escrow service that all agents and buyers could trust. Of course, convincing the sellers that it's legit will take some time. Thanks again, Peter.

[@PeterCsere]

@@surfviewgardens2396 Yeah, that's another thing that's weird - price shyness. I've met a lot of sellers who think if they can get you to see the property first, you will fall in love with it and pay whatever high price they say. So, I've had a bunch of situations where someone tells me about a farm they have for sale, and of course the very first thing I ask is how many hectares and the price. Of course, they are scared to say a price that's too low and potentially miss out on whatever they might be able to get for it if they size me up for a while and measure my reaction to seeing the property. So they tell me, "Oh, come and see it, we'll go out there some day, it's beautiful, has a stream, etc etc etc." I politely tell them that until they have decided upon a sale price, I'm not interested in seeing the property as it would be a waste of my time to view a property that I don't even know the price of. Sometimes they come up with a price in a few days, sometimes I never hear from them again.

[@surfviewgardens2396]

@@PeterCsere That's wise, Peter - not investing time until they're ready. When they get motivated by financial necessity, I bet price surfaces. Until then, like you say, why waste your time? Sometimes, shmoozing and demonstrating near-poverty may open their heart and give a price within one's reach.

[@AdvExplorer]

how do squatters laws apply to community area residents and volunteers, members and renters?

[@terrychretien8921]

Great info - thanks!

[@Pomvincent1]

Very well said, you truely said it all!

[@gaylewilliams4805]

Very valuable information

[@darrenbullman9450]

Yes I'm interested and thinking about it 😊.

[@claudbrown4080]

I am a Jamaican and would like to live in Ecuador. How much can I get a 8 by 20 inch of land for? And what is the cheapest price for a house over there?

[@JS-jh4cy]

What about squatters and someone showing up 7 years later and say it is their land?

[@junglejarred6366]

Thank you. Any chance you know of any similar communities closer to the ocean? I really feel i need the ocean to be a regular part of my life if i decided to live there

[@docmanhtn8345]

Just stay where you’re at colonizer

[@junglejarred6366]

@@docmanhtn8345 listen slave, I'll do as i please with zero concern for the vomit ewe spew. Namaste

[@asscrackistan]

@@docmanhtn8345 What an uneducated life view. Everywhere in the world gets colinized at some point, it's nature, why not work with the wealthy people moving in rather than against them? Because whether you want it or not it will happen. Wealth is power and power always wins. It happened to my hometown too.

[@Charlie-bi1of]

Great information, can you recommend a real state attorney? Thanks!

[@PeterCsere]

I don't know any personally, sorry.

[@CameronsCandorOriginal]

Good video Peter, where did you pick up all this info.?

[@Jk71MON]

Thank you for your video. It was helpful.

[@DebMer]

Very helpful, thanks!

[@Indanao1]

Good you did this, but I can't hear it as the volume is way too low. Maybe being long in the tooth myself was the reason. Well done. Puerto Lopez

[@jake.presents]

I can hear him perfectly. And everyone else is asking additional questions from the content… perhaps your audio was turned low or headphones malfunctioning?

[@Indanao1]

@@jake.presents Thanks Jake, gonna check that out.

[@imaginationland474]

any gov't corruption or instability that could lead to property issues?

[@PeterCsere]

The government tends to be pretty good with land and property rights. They sometimes auction off mining rights on native lands, but those aren't protected as private property like titled land.

[@PeterCsere]

Property law here is based on "fee simple" land ownership under common law, it is pretty common throughout the world, you can search "fee simple" for more info about that legal framework.

[@designdavidsimenc4153]

Is it alowed to build on every land purchased or r there restrictions?

[@PeterCsere]

For urban land there are restrictions. In general, for rural land, you don't have to get building permits and can build whatever you want. A few restrictions; for example, large mining operations require government permission, toilets can't flush directly into rivers, also there is a "zone of protection" near rivers and streams so they don't want you building large concrete houses right next to big rivers, but if you are building natural structures there is no issue.

[@carloscastillo9852]

Hi, from Quito Ecuador, it depends who you bought this land however in most of it is possible, if you have any question. please contact with us If you are looking for real estate Expert in Ecuador for selling and buying properties, or you wanna a own design for a house or apartment,contact with us [e-mail] (593+0958845434).Greetings from Quito Ecuador.

[@g-dswatching5395]

Allodial title is there such thing in Ecuador? The ownership of REAL property? Titulo alodial?

[@FruitHavenEcovillage]

Hi, there are very few places in the world where that is possible... in Ecuador which uses a common law system we have "fee simple" land ownership.

[@myavabuchanan5556]

Are there a lot of poisonous snake ?

[@PeterCsere]

Some. We see them rarely.

[@docmanhtn8345]

I have an apartment building in Ecuador, Quito, we’re selling it for 100k if you guys have a better offer let me know

[@rolfpoelman3486]

1:10 "...in the US and other "developed countries." "

[@aniwee17]

I am concerned about China. Ecuador owes a lot of money to China. I am wondering if the Chinese is taking over the land development for resource extraction.

[@PeterCsere]

Hi Mark - Yes, Ecuador has a lot of foreign debt to China. And one of the things Ecuador is expected to do in return, is to offer China mineral concessions. Primarily for oil, gold, and copper. While they do have some large mines with negative environmental impact. the current president, and the population in general, have realized the danger of this situation and are now more in favor of balancing the budget and getting less dependent on foreign debt. The previous president spent crazy amounts of money but the result was that the country's huge budget was dependent on foreign debt. Fortunately Ecuador does not have its own currency, so it can't print that into oblivion until its economy crashes like many other small countries have done. There is no risk to private landowners, as the government will not simply take private land and give it to the Chinese. Ecuador has a very strong respect for private property rights. It leases "public" land for mineral concessions.

[@aniwee17]

Peter Csere thank you so much. It is good to know your investment won’t be confisticated by the government to pay the Chinese off.

[@holisticlee5377]

which part of the world doesnt owe china haha, i wouldnt worry about that

[@Steven-gf1eu]

Do u think buying land in manta rn makes sense ?

[@PeterCsere]

In Manta on the coast, right now, definitely not. Crime and cartel activity is unacceptably high on the coast.

[@Steven-gf1eu]

@@PeterCsere ah I see , truly unfortunate. are there any places in Ecuador that you feel are good

[@PeterCsere]

​@@Steven-gf1eu Most rural areas that are not on the coast are still pretty safe, though Vilcabamba, despite being rural, has an issue with a years-long string of armed home break-ins. So, most rural areas that are not huge tourist hot spots with tons of wealthy foreigners with no home defense, I would consider to be good. Except for the coast which is really just not the best place in terms of crime. Big cities are full of crime. That is a problem everywhere in the world that just keeps getting worse and worse.

[@Steven-gf1eu]

@@PeterCsere thank you so much for the response

[@mocny01]

good job

[@divinaflamingarrow9556]

Thanks for the low down. I know I won't bother with this.

[@bugs4680]

Tbh id be very flexible with the natives ... dont wanna be rigid , ill take alittle loss for the sake of respect and honor sounds nice

[@rolfpoelman3486]

Are mosquitoes not a common problem?

[@PeterCsere]

Gnats, yes. Mosquitoes, no. I only encounter significant mosquitoes when hiking in really dense jungle after a rainstorm during the rainy / wet season.

[@PeterCsere]

Gnats like to bite ankles mainly, sometimes wrists, they bother new people. Wearing socks / long sleeves easy to avoid them

[@benjamingeiger2167]

Hy Peter, nice video. Are you from Hungary? Are you a raw vegan?

[@PeterCsere]

Hey, I am half hungarian but I grew up in the US. Yes well I'm raw nearly all of the time, I still eat cooked food occasionally. I consider myself an "opportunistic frugivore" ;-)

[@Buildingenjoyment]

Línea de fabrica. Lina de fabrica. Línea de fabrica. Before anything!

[@rosephoenix4634]

Many people that need to buy a land owner that are up to Bill of a new house to future house or you a futuristic house that many people that never seen before that day on I still on looking or even never seen before but sometimes out of everyone needs to know that they need to do their homework first then took a bite of a land or even that they're not do it at all and that is the truth everyone it's just like well do you homework assignment search to understand and you ran. It is the perfect one then everyone already done for some time that a Time move on and that time that already passed the could be like very like well the same it is or not the same bed as but sometimes that are people that are wanted to live well houses already built already or get a new house that are to buy and their own land it's about a house it's just like everyone need to know do your homework first and there were honest and that which one is it at Define doubt a very surprising

[@timnoel6342]

Is it possible to find fixer upper houses in Ecuador and any help on how one would start looking

[@PeterCsere]

Every house here is a fixer upper! Lol. There are some real estate websites and then there is OLX. OLX is prob a good place to start.

[@carloscastillo9852]

Hi If you are looking for real estate Expert in Ecuador for selling and buying properties, or you wanna a own design for a house or apartment,contact with us [e-mail] (593+0958845434).Greetings from Quito Ecuador.

[@PropheticCoachTheresa]

This channel should be called intelligent american living in Ecuador, lol.

[@romeoliriani8563]

Perfect

[@scottycarver5186]

Aww, I wanted to leave a bad Google review.

[@divinee.155]

In south Africa thats understandable U OWN NOTHING THERE

[@yoshuedelprana6259]

DON’T BOTHER COMING TO BUY LAND IN ECUADOR, YOU WILL END LOSING YOUR INVESTMENT AND LIVING AFTER ALL!

[@PeterCsere]

Yoshue Del Prana lol that's only for dumb old retired gringos who buy overpriced Cuenca/Vilcabamba real estate and don't pay attention to the common scams or property laws.

[@holisticlee5377]

@@PeterCsere That is sooooo true, so many people we met while living in Vilca, come with loads of cash and dreams of living naturally while not having a clue on how to, set themselves up here instantly and then after a few years either their wives dont like it, or they run out of money because of lack of education on how to run a finca, or the culture is too different for them, or in rare cases they flash their money too much and get held up or robbed, this is not the countries fault, it is the investors... its great for me though, i get a whole bunch of expensive imports for cheap when they leave, best garage sales in Vilca! haha, but seriously I shouldn't joke, it is actually very sad and can ruin some people lives but it really is their fault and not the country, and people have to do the research properly before making such large investments.

[@jthomason20]

@@holisticlee5377 hey you have had good luck with garage sales in vilcabamba?

[@holisticlee5377]

@@jthomason20 yes, a friend of mine is coming back from the states in a week to sell the rest of his things before he heads off again, mostly machinery left, but good stuff, the facebook pages usually have a lot of good stuff :) traded some rootbark for a drone two days ago, so having fun with that!

[@jthomason20]

@@holisticlee5377 oh cool I'm living like 6hrs from there so if theres anything left he needs to sell let me know I might be interested if it's a good deal

[@kennydeck6742]

Your video is so long ago I’m not sure you still watch this for comments but if you do… Do they still have the laws where if you slander someone even if you’re telling the truth that they can sue you? I’m thinking I would like to move to Ecuador but I’m usually very honest so if I’m gonna have nothing but problems if people are doing bad business and I’m being honest about it with other people I might just need to look somewhere else to live..😕

[@PeterCsere]

Hey, funny timing here. They literally just changed this law. I saw the news story a few days ago about the president signing the new law into effect that negated the previous law. He did it to expand press freedom, the main way it was used before was to sue journalists so corrupt politicians could avoid scrutiny.

[@kennydeck6742]

@@PeterCsere awesome. Not sure things will work out for Belize so looking for a similar option, which is likely also cheaper. Appreciate u getting back to me. Thank you and Take care👍