Derechos y Acciones
(Rights and Shares):
in Ecuador - addendum
Be aware if you are purchasing a property which the
seller inherited, instead of purchasing
directly themselves. If you buy such
property, instead of receiving "clear title"
directly in your name, you will get
"100% of the rights and shares" in the
property - known as Derechos y Acciones.
In principle, this is
similar to owning 100% of the shares in a
corporation that owns the property. In
addition to owning "100% of the shares" you
also have "100% of the rights" to the
property - exactly the same as if you had
the title directly in your name. Legally,
this is still a very secure method of
There is always some risk, however, that
unknown heirs will come forth and put a
claim on the property, and will ask for some
portion of the share of ownership.
There a few things to consider in this
- Your lawyer will ensure that the
current owners are the legal heirs to
the property. The sellers will
then sign a legal affidavit which states
that they guarantee that there are no
other heirs, and they will be
responsible for defending the title from
unknown parties who come forward claiming to
be an heir.
- Title Insurance can be purchased,
which will defend the title in case the
sellers are not able to.
- If the original owner left a will
which outlines all the heirs, that adds
additional security to the transaction;
it would be much harder for someone to
claim to be a descendent of the original
- There is a time period of 15 years
after the death of the original owner
for claims to be filed. After
the 15 years have passed, the title can
be converted back to clear title
directly in the current owners name. (in
the meantime, if you've sold your shares
in the property to someone else, the
subsequent owners can do this as well -
whomever is the owner at the time).
There is really no legal reason to
convert the title, it is perfectly fine
to continue to hold 100% of the rights
and shares instead of direct title.
Fortunately, the initial title search
will disclose if the current owners are the
"original" owners that bought the property,
or if they inherited it. The
transaction can be terminated immediately,
if you desire, or you can proceed with the
transaction - just make sure that your
lawyer is comfortable that the sellers are
the legitimate heirs, and make sure you get
the affidavit from them stating that they
will defend the title against claims.
to the "About Ecuador" page