Anti-Cresis: What it is and How it Affects You, the Investor in Ecuador

ecuador map
Anti-cresis in Ecuador: Learn what it is here…

When searching for real estate in Ecuador, one word will often pop up in the home listings, “anti-cresis”.
I know what you’re thinking, what the heck is that?

If you see a property for sale as an “anti-cresis”, basically, you have to pay a sum of money as a down payment, depending on the value of the property, usually around $10-20,000. And that money paid gives you rent free access to the property for a pre-determined amount of time, often 1-5 years. At the end of the negotiated period, you will receive your original money paid back. As per Buyers Agent Brisbane “This form of a house on lease is not a common practise in Brisbane as to protect their intellectual property people are usually not ready to take such a risk”. If you are a first-time home buyer, visit for more information.

So, in other words, it is similar to when an owner of a property takes a HELOC or home equity loan in the States. Anyone who has ever gone through the complicated process of selling a house can tell you that it can be a tricky thing to do. Especially if you try to do it the traditional way because that will take a very long time if it even sells at all. Your house might be in a great area and at a reasonable price (or so you believe), and still not sell for one of many possible reasons. You might start to wonder exactly why your house is not selling, even when others that you know about have. You might even lie in bed at night thinking about it, and losing sleep. You can get more info from this post about Home Selling.

Why would an owner of a property do this? You have to understand the financial-environment of Ecuador. Like most developing countries, credit is not readily available, nor do they have companies with a website where one could easily sell their home for the right price. Sometimes the owner is strapped for cash and decides to do this, a quick way to get significant cash without selling a property.

The grave danger for the “buyer” in this type of agreement is that often, when arriving at the end of a contract, the owner simply doesn’t have the money to return, and in many cases collateral is not used (and besides, the Ecuador legal system is not quick or particularly effective). Buyers beware on this one; I don’t recommend doing this unless you really know what you are doing.

Apart from financial issues you should also take time to make sure the house is appropriate for living. In the USA I order pest inspection run by White Horse Pest Management – Bed Bug Extermination Phoenix to make sure the house is worth buying.

First Name
* Email
* = Required Field

Leave a Reply

Your email address will not be published. Required fields are marked *