An important fact one must watch out for when buying property in the form of lots in Ecuador is the difference between “urbanization and lotization.” What’s the difference you might wonder? Well, the difference is huge. The significant difference that separates the two is the fact that with a lotization the land developer is essentially quite often only interested in selling you the lot that has been subdivided into parcels of land known as the “lots.” Essentially it is a subdivision.

The biggest difference is that quite often the lotization development does not have any services such as electricity, water, or septic system. You are buying the land and nothing more. The cheaper price often is enticing to the person with promises of infrastructure development in the future based on pretty 3D models, which never actually materialize.

Lotization

• A lotization needs to be approved by the municipality, and the parcel of land needs to be
  subdivided into lots.
• A lotization must provide an access road to the property.
• Infrastructure is not required.
• No utilities are required.
• Usually has no development plan.
• A lotization is usually chosen when the developer does not want to spend a great deal of money.

Urbanization

• An urbanization must put in the infrastructure such as the roads, electricity, water, sewage, and
  waste removal.
• An immense amount of engineering plans and studies must be completed and approved by the
  municipality and government bodies.
• The subdivided parcels of land “the lots” are usually smaller than lotization lots so the
  developer of the urbanization can get maximum usage out of the investment to help recoup the huge
  costs of developing the urbanization.
• Urbanizations have amenities such as, commercial areas, social, parks, security and other
  services you would expect in a community.
• Extensive development plan and government approval.

We are a Canadian owned urbanization!

When buying a lot in Ecuador, for your comfort and security of your investment, it is therefore wise to inquire if the lot you are purchasing is in a “lotization” or an urbanization. Ecuador is a beautiful country and has been voted #1 retirement destination in the world once again! Make the right decision by checking this often overlooked but critical detail.