Purchasing a Las Olas Home
Your worry free steps to purchasing your home!
If you’ve never purchased land in a foreign country before, the process might seem a bit daunting. The Las Olas legal team will help you each step of the way if you decide to purchase a home in Las Olas.
While you wait to choose your lot at Las Olas during your visit to Ecuador, we suggest signing a Reservation Agreement as a first step. Signing a Reservation Agreement and providing a refundable $1,000 deposit will reserve your lot for a period of 60 days. Your $1,000 initial deposit is held by an independent escrow agent in the United States. Click here to learn about the benefits of signing a Reservation Agreement.
Whether you decide to take advantage of the Reservation Agreement offer or not, once you decide to purchase a home at Las Olas there are three options available to you to secure your home purchase. For a contract to be legal in Ecuador you must be present in the country or sign through providing a Power of Attorney.
- Following your visit to Las Olas and making the decision to join the Las Olas community you can sign a Promissory Sales Agreement in person.
- Leave a limited Power of Attorney with an individual in Ecuador during your visit that provides this individual a limited right to sign the agreement on your behalf once you provide them authorization to do so.
- Upon your return home, execute a limited Power of Attorney at an Ecuadorian Consulate in your country.
Once the Promissory Sales Agreement is signed and notarized we will require you to make the initial down payment as outlined in the payment schedule. A term will be defined within the Promissory Sales Agreement for delivery of the public deed to your home or condo. Further, if you purchased a home lot, you will also be required to sign a construction contract at the same time, which outlines the terms of the construction of your new home.
Property Deed and Title Transfer
At the time of final closing, the Las Olas legal team will provide you with a deed (escritura) for your property. The team will provide all title transfer services and record your deed. The buyer is responsible for all closing costs.
You are responsible for property taxes of your lot from the date of purchase. The local municipality will review the value of the property and provide you with the amount payable for your property taxes. You should expect to pay around $500 per year in property taxes. There is a process involved but don’t worry, our legal team will assist you.
Las Olas Homeowners’ Association (HOA)
When you purchase a home at Las Olas, you automatically become a member of the Homeowners’ Association, for which there will be annual dues.
The Homeowners’ Association is a non-profit Ecuadorian corporation. It establishes and administers rules governing the community, and forms an architectural control committee to review building plans for homes that are not pre-approved.
Annual dues are used for improvement and maintenance of roads and common areas, administration, security and insurance, among other expenses. Dues will be paid monthly or annually on a date determined by the association.
While homeowners pay one fee and are required to maintain their own house, condominium owners would be required to pay both the HOA fee and a second fee related specifically to the maintenance of their grouping of condominium’s. All three floor condominium buildings will be grouped together, all six floor condominium buildings will be grouped together and all twenty floor condominium buildings will be grouped together. These fees would cover maintenance and repairs to each respective group of condominium buildings much like individual homeowners have to pay for maintaining their individual house. By grouping types of buildings together, it reduces the risk that one building’s homeowners would have to come up with a large individual special assessment ie. if an elevator needs to be replaced.
Electric bills, phone, water and internet would be paid by the individual homes or condominium owners. Trash collection would be covered by the HOA’s. A small portion of the HOA fee subsidizes the maintenance of nature reserve, golf course and equestrian center. This fee is to ensure that these areas are maintained at the highest standard and even though not everyone uses these facilities, they all benefit from their existence and quality.
At the moment, we estimate the HOA fees for an average size home and lot to be around $125 per month. For a condominium, the fees are estimated to be about $140 per month.