Issues re: selling a condo

[Donald Birch]

Is a lawyer required (or highly advisable) when selling a high-rise condo?
My Salinas property was new construction when I purchased it in 2012 (and we then
used a lawyer). However, selling seems less complicated and am not sure
if a lawyer is required. The property will almost certainly be sold when I’m out
of Ecuador – so is a Power of Attorney necessary (which I understand does
not have to be a lawyer)? Please note that the funds from a sale will be wired to
my Canadian bank account, so will the Ecuadorian government will keep about 4%
currently?
Thank you in advance for answering my questions.

[IL’s Insider Expert]

Hi Donald – thanks for your question! We asked expat and IL contributor Jim Santos to share his situation… Here’s what he says…

Donald,

We sold our high-rise condo in Salinas last spring, and I strongly recommend that you employ an Ecuadorian attorney. This is especially important if you will not be in the country when it sells (like us). You can get a “poder”, or Power of Attorney, and they can then sign for you. Think about it this way – you are selling, but the other person is buying too – so how can it be less complicated than when you were the buyer? You need someone you trust to draw up the contract and other paperwork, calculate the fees and taxes involved, and to make sure they are paid. Two attorneys that have been helpful to other expats are Sebastian Cordero scordero@rcpabogados.com or Camila Moreno cmoreno@morenodidonato.com .

Some other tips:

• Realtors do not cooperate much in Ecuador. Tell several realtors about your property, but do not sign exclusive listing agreements with any of them. Make sure it is clear upfront what percentage commission you are offering, and what the sale price is. I have heard of some agents offering to “try harder” to sell your unit if you pay them a bonus upfront. Needless to say, this is not particularly ethical, and these agents should be avoided. Ask to see the realtor’s ACBIR card (this will show that they are registered and licensed)
• Everyone will ask you “what is the lowest amount you will accept”. Don’t answer, or use our response, “What is the largest amount you will pay?”. There are a lot of properties on the market now, and many will make offers requesting large discounts, so price your unit accordingly.
• Our buyer was found by one of our guardians. Let all of the staff in your building know your unit is for sale, and offer a bonus to the one that can find you a buyer (provided it is not a real estate agent they bring). That way, you save on commission.
• Post your sale on social media like Facebook, Instagram and Twitter
• When you have an offer, ask your attorney to estimate the total cost of the sale to you, and see if you can have the downpayment cover your expenses, and deposited in your Ecuador bank account until the sale closes. That way, no exit tax on that amount.
• Remember if you sell to a North American or an Ecuadorian who can pay from a US or Canadian bank account, you will not need to pay exit tax.
• Be patient! Every offer is different, and you will have to weigh many factors – possible commission, exit tax, currency conversion, etc. Make sure you know what you will actually take from the sale before agreeing.

Hope this helps. Good luck, and feel free to ask any other questions about the process.

-jim

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