For expats involved in Ecuadorian real estate, one principle stands above all others in safeguarding your investment: exercise extreme caution with a Power of Attorney (POA). Based on extensive observation of the market, my unequivocal advice is to grant a POA only to an individual from your absolute inner circle, ideally immediate family. I stress “trusted family” because, as I’ve witnessed, the temptation of significant assets can strain even the strongest bonds. In Ecuador, your circle of genuine trust may prove to be much smaller than you anticipate.

You may encounter situations where signing a POA is presented as a necessary convenience. A typical scenario involves an expat seller who needs to leave the country before the transaction is complete. An attorney or facilitator might propose a POA, assuring you they will manage the entire sale process, suggesting you simply depart and enjoy your next chapter. This is the point of maximum vulnerability.

I have seen numerous expats suffer severe financial losses under these circumstances, individuals who never received the proceeds from their sale. The convenience of a POA is illusory when weighed against the risk of losing your entire investment.

Therefore, my guidance is firm: if you must leave Ecuador before your property sale is finalized, the safest course of action is to return for the closing. Treat this transaction with the gravity it deserves. However far you have traveled, a round-trip flight is a minor expense compared to the value of the asset at stake. Fly back, oversee the final signing personally, and ensure the funds are transferred directly to you.

While many complete transactions using a POA without issue, the consequences for those who are misled are catastrophic. Those who have been defrauded universally share one regret: that they ever signed the document. Convenience is never a valid substitute for control when it comes to the security of your investment.