Buying, selling and renting
How to buy a property in Ecuador
The whole path of a home purchase in Ecuador: which certificates to ask for, the promise of sale, municipal transfer taxes, the deed at the notary and the inscription in the Property Registry.
Buying a house, an apartment or a plot of land in Ecuador follows an order set by law: an agreement between buyer and seller is not enough, the sale of real estate is only complete once it is granted as a public deed (escritura pública), and the buyer only becomes the owner when that deed is recorded in the Property Registry (Registro de la Propiedad) of the canton. This guide walks through that path step by step and tells you which document to ask for at each stage.
Before you search: budget and financing
Work out how much you can pay from your own funds and how much you will need to borrow. If you need a mortgage, get pre-qualified before you commit: BIESS offers online pre-qualification to IESS members and retirees, and banks and credit unions have their own. Knowing the approved amount keeps you from signing a promise you cannot keep.
Add the transaction costs to the price: the municipal taxes on the transfer, the notary's and the Property Registry's fees (charged according to their own tables and ordinances), the fees of the lawyer who drafts the minuta and, with a loan, the costs of the appraisal, the mortgage and the insurance.
Step by step
Identify the property by its official data
Ask the seller for a copy of their recorded deed, the property (predio) number or cadastral code, and the latest property-tax (predial) receipt. You will need them to request the certificates in the next steps.
Check the legal status at the Property Registry
Request the certificate of encumbrances (certificado de gravámenes; in some cantons it is called a certificado de solvencia or historia de dominio). It shows who owns the property, how they acquired it, and whether it carries mortgages, prohibitions on sale, attachments or other limitations. Make sure the person selling is the owner shown there, or holds a sufficient power of attorney.
Check the municipal status
Confirm the predial is paid and ask the municipality for the appraisal certificate or cadastral record: the cadastral appraisal is the minimum base of the alcabala tax. If you plan to build or extend, also check the land-use and building rules for the plot (in Quito, the Informe de Regulación Metropolitana, IRM).
Inspect the property
Check that what you are buying matches the deed: boundaries, area, buildings. In a building under horizontal property (condominium), ask about the service charges (alícuotas) and whether anything is owed to the administration.
Sign a promise of sale, if needed
When the deed cannot be signed straight away (for example, while a loan is approved), the parties can sign a promise. To be binding, the Civil Code (art. 1570) requires it to be a public deed when the promised contract requires one — as a sale of real estate does —, to set a term or condition for signing the contract, and to specify that contract so that only the formalities are missing.
Have a lawyer draft the minuta
The minuta is the text of the contract, drafted by a lawyer, that the notary turns into the public deed. It must identify the parties, the property with its cadastral code and boundaries, the price and how it is paid, and who bears each cost.
Pay the transfer taxes
The municipality assesses the alcabala tax and, when an urban property is sold at a gain, the tax on profits and plusvalía. The notary cannot grant the deed without the payment receipts (COOTAD, arts. 537 and 560).
Grant the public deed at the notary
Buyer and seller (or their attorneys) sign before the notary. With a mortgage loan, the mortgage is also granted by public deed (Civil Code, art. 2311).
Record the deed in the Property Registry
Recording transfers ownership: from that moment you are the owner. The mortgage must be recorded too; without that it has no effect (art. 2312). Keep the recorded deed: it is your title.
Update the municipal cadastre
Check that the property is in your name in the municipality's cadastre, which will bill you the predial every year from then on.
Transfer taxes
| Tax | What it taxes | Rate in the law | Who the taxpayer is |
|---|---|---|---|
| Alcabala | Transfers of ownership of real estate for value (art. 527) | 1 % of the taxable base (art. 535); the base is the contract price or, if lower, the cadastral appraisal (art. 532) | The contracting parties who benefit from the contract (art. 531) |
| Profits and plusvalía | The gain on the transfer of urban property (art. 556) | 10 % of the gain, a rate an ordinance may change (art. 556), with deductions (art. 557) | The owner who sells at a gain; the buyer is liable up to the unpaid tax (art. 558) |
The law provides exemptions; for example, no alcabala is due on the sale of property for previously qualified social-interest housing programmes, nor on transfers and mortgage loans between the IESS and its members (COOTAD, art. 534). Each canton applies its own ordinances: ask the municipality's financial department for the assessment before you settle the numbers.
Mistakes to avoid
- Handing over the full price before the deed, or without the deed stating how and when it is paid.
- Buying without having seen a recent certificate of encumbrances from the Property Registry.
- Relying on a private document: a sale of real estate is not complete without a public deed.
- Forgetting the recording: until it is recorded, the property stays in the seller's name.
- Budgeting for the price alone and not for the taxes, the notary and registry fees and the loan costs.
Frequently asked questions
When do I legally own the property?
When the public deed of sale is recorded in the Property Registry of the canton where the property lies. The Civil Code says ownership of real estate passes by that recording (arts. 702 and 703).
Is a promise of sale mandatory?
No. It is useful when the deed cannot be signed straight away, for instance while a loan is approved. If you sign one, to be binding it must meet art. 1570 of the Civil Code, including being a public deed when the promised contract is a sale of real estate.
How much is the alcabala tax?
The COOTAD sets 1 % of the taxable base, which is the contract value or the cadastral appraisal if that is higher. Additional taxes created by special laws may apply within the limits of art. 536. Ask the municipality for the exact assessment.
Which certificate shows the property has no mortgages or liens?
The certificate of encumbrances from the Property Registry shows recorded mortgages, prohibitions and other limitations. Unpaid property tax is checked with the municipality.
Sources
- Código Civil (Codificación 2005-010) — FAOLEX, FAO (copia del texto oficial)
- Código Orgánico de Organización Territorial, Autonomía y Descentralización (COOTAD) — Consejo de Participación Ciudadana y Control Social (copia publicada)
- COOTAD, texto actualizado al 10-03-2026 — LegalCloud (normativa ecuatoriana)
- Certificado de gravamen del inmueble — Registro de la Propiedad del Distrito Metropolitano de Quito
- Emisión del Informe de Regulación Metropolitana (IRM) — Municipio del Distrito Metropolitano de Quito
- Préstamo hipotecario: Vivienda terminada — Banco del Instituto Ecuatoriano de Seguridad Social (BIESS)