Navigating the Final Stretch: Seller's Guide to a Smooth Closing in Cuenca

As an expat seller in Cuenca, the closing process for your property can feel like navigating a labyrinth. While the excitement of a completed sale is palpable, the final week demands meticulous attention to detail and an unwavering focus on legal and financial security. My role, as your experienced expat real estate broker and property law expert, is to ensure your transaction is not just completed, but completed flawlessly, protecting you from the common pitfalls that can derail even the most promising deals. This guide will walk you through the critical steps in the week leading up to your closing, emphasizing the legal safeguards and financial due diligence necessary for a truly secure sale.

The Final Countdown: Key Milestones in Your Closing Week

The period immediately preceding the signing of the escritura pública de compraventa (public deed of sale) is a crucial phase. It's where all the preparatory work culminates, and final checks ensure everything aligns perfectly.

1. Verification of Funds and Payment Arrangements

This is paramount. Before any documents are signed or keys are handed over, you, the seller, must have absolute confirmation that the purchase funds are secured.

Escrow or Direct Transfer: Depending on the agreement, funds may be held in an escrow account managed by a trusted third party (less common for private sales but possible) or, more typically, transferred directly to your designated bank account.
Bank Confirmation: Do not rely on a buyer’s verbal assurance or an email from their bank. You need official confirmation from your bank stating the funds have been received and are cleared for use. This includes verifying the exact amount, as agreed upon in the promesa de compraventa (preliminary sales agreement).
Currency Exchange: If the buyer is transferring funds from an international account, be aware of potential currency exchange rate fluctuations and bank processing times. Ensure the final amount received matches your agreed-upon sale price in USD.
Taxes and Fees: Deduct any agreed-upon closing costs, outstanding property taxes, or capital gains taxes before confirming the final net proceeds. A clear breakdown of these deductions should be readily available.

2. Final Property Inspection and Walk-Through

While the buyer will have conducted their initial due diligence, a final walk-through is standard and essential.

Condition Confirmation: This is your opportunity to ensure the property is being left in the condition agreed upon in the sales contract. This typically means the property should be vacant (unless otherwise stipulated), clean, and with all agreed-upon fixtures and fittings included.
Damage Assessment: Check for any new damage that may have occurred since the initial agreement. Any issues identified here need to be addressed promptly, either by the buyer accepting the property as-is with a price adjustment or by you making necessary repairs before closing.
Utilities and Services: Confirm that all utilities (electricity, water, gas, internet) are functional and that you have settled all outstanding bills up to the closing date.

3. Municipal and Utility Clearance

Ensuring the property is free of municipal debts is a non-negotiable aspect of a clean title.

Certificado de No Adeudar (Certificate of No Debt): You must obtain an updated Certificado de No Adeudar from the municipal tax office (Dirección de Avalúos y Catastros) for the property. This certificate confirms that there are no outstanding property taxes or municipal fees. Any existing debts must be settled before the closing. We will verify this ourselves, but it is your responsibility as the seller to ensure it is paid.
Utility Bills: All utility bills (water, electricity, sanitation) up to the closing date must be paid. You should have receipts or proof of payment readily available.

4. Legal Documentation Review and Preparation

The escritura pública de compraventa is the cornerstone of the transaction.

Minuta: The minuta is a preliminary draft of the public deed, prepared by the notary public. This document outlines the terms of the sale, identifies the parties, describes the property in detail, and specifies the purchase price and payment method.
Notary Public Appointment: You and the buyer will jointly select a notary public. Notaries in Ecuador are legally authorized to draft and register property deeds. I will guide you in choosing a reputable notary with experience in expat transactions.
Review of the Escritura: Prior to the signing, I will meticulously review the escritura pública drafted by the notary. This is a critical step to ensure it accurately reflects the promesa de compraventa, that your name and the property's details are precisely correct, and that there are no hidden clauses or onerous conditions.
Identification and Authorization: Ensure your identification documents (passport, cédula if applicable) are valid and readily available for the notary. If you are authorizing someone else to sign on your behalf (power of attorney), ensure this document is legally sound and translated if necessary.

5. Title Deed Verification and Encumbrance Check

While the buyer’s due diligence will have included this, a final confirmation is always prudent.

Registro de la Propiedad (Property Registry): We will ensure that the property's title is clear and free of any existing liens, mortgages, or encumbrances that were not disclosed or agreed upon. The Certificado de Gravámenes (Certificate of Encumbrances) is the official document for this.
Ownership Clarity: Confirm that the title deed accurately reflects your legal ownership of the property. Any discrepancies must be resolved before closing.

Real Estate Due Diligence Checklist for Sellers (Closing Week Focus)

This checklist focuses on the essential steps you as the seller must ensure are completed for a smooth and legally sound closing:

[ ] Funds Verified: Official confirmation of cleared funds in your bank account, matching the agreed sale price.
[ ] Outstanding Debts Settled:
- [ ] Municipal property taxes paid (updated Certificado de No Adeudar obtained).
- [ ] Utility bills (water, electricity, sanitation) paid up to the closing date.
[ ] Property Condition: Final walk-through completed and agreed upon by both parties.
[ ] Keys and Access: All sets of keys for the property are accounted for and ready for handover.
[ ] Required Identification: Valid passport or cédula ready for notary.
[ ] Escritura Draft Reviewed: Thoroughly reviewed and approved escritura pública de compraventa draft.
[ ] Capital Gains Tax Readiness: Understand your capital gains tax obligations and have made arrangements for payment. This is crucial for completing the transfer.

⚠️ Broker's Legal Warning: The Property Risk You Must Veto.

Unregistered Construction (Construcción No Declarada): A frequent and serious issue in Ecuador is the presence of unpermitted or undeclared construction. This can include added rooms, extensions, or even entirely new structures not reflected in the original property plans registered with the municipality and the property registry. If unaddressed, the buyer can refuse to close, or worse, they might proceed and then be burdened with significant fines, demolition orders, or an inability to legally title the unauthorized additions. As your broker, I will have flagged this during the initial due diligence phase. Your veto should be exercised if there is any unrecorded construction that has not been officially declared, permitted, and incorporated into the property's legal records prior to closing. Failure to address this means you are selling a property with a fundamental legal defect that will inevitably create problems for the buyer, and potentially for you if liabilities are discovered post-sale. We must ensure the escritura accurately reflects the legal, registered state of the property, not just its physical appearance.

The Day of Signing: The Final Act

On the day of signing, all parties will meet at the notary's office.

Reading and Signing: The notary will read the escritura pública de compraventa aloud. You will have the opportunity to ask any final questions. Once satisfied, all parties will sign.
Payment Release: Typically, upon signing the escritura, the buyer will finalize the payment, and the funds will be released to you.
Registration: The notary will then proceed to register the escritura with the Property Registry (Registro de la Propiedad). This is the legal act that transfers ownership. You will receive your copy of the registered deed, and the buyer will receive theirs.

Conclusion: Your Peace of Mind

Successfully selling your property in Cuenca as an expat hinges on meticulous legal and financial due diligence, particularly in the crucial week leading up to closing. By understanding these steps, verifying every detail, and working with an experienced professional who prioritizes your legal and financial safety, you can transform a potentially stressful process into a secure and satisfying conclusion to your real estate journey.

Ready to navigate your property sale with confidence? Schedule a free, property-risk consultation today to ensure your closing is as secure as it is successful.