Ecuador decree tightens debt collection for co-owned properties

A new executive decree in Ecuador aims to tackle the persistent problem of overdue payments in co-owned buildings, a situation exemplified by a Quito resident who took 15 years to pay off a $21,000 debt.

Executive Decree 462, signed by President Daniel Noboa on July 31, 2026, and effective August 3, seeks to provide building administrations with more effective tools to recover debts. Previously, legal collection processes could take between six months and three years, often incurring substantial legal fees. This lengthy process frequently led administrators to wait until debts reached significant amounts, sometimes between $1,000 and $3,000, before initiating action.

The decree allows for the restriction of communal services for debtors. This includes suspending access controls, such as automatic gates or remote controls, provided a reasonable manual alternative exists. Building administrators can also restrict access to amenities like swimming pools, gyms, and communal areas. Furthermore, the decree stipulates that overdue obligations will accrue interest from the day following their due date.

In Quito alone, the Directorate of Metropolitan Cadastre registers 605,856 properties under the co-ownership regime, a figure that has grown by 6.9% since 2022. While this number doesn't represent the exact count of debtors, it indicates the broad scope of properties affected by the new regulations. The decree aims to streamline the collection process, preventing debts from becoming chronic and easing the financial burden on diligent property owners.