Ecuadorian Decree Tightens Condo Debt Collection Rules

Ecuadorian condominiums face stricter debt collection rules following a recent presidential decree that enhances measures against residents with overdue payments. Executive Decree No. 462 amends the General Regulations of the Horizontal Property Law, introducing clearer procedures for administrators to recover unpaid condominium expenses.

Under the new regulations, administrators must issue a liquidation of owed values when two or more expenses are overdue. This document, requiring approval from the General Assembly within thirty days, will now carry the weight of an executive title, simplifying the legal process for debt recovery. The decree also introduces specific written requirements for payment agreements between co-owners and property administration.

Furthermore, the decree addresses repeat offenders. A co-owner is considered recidivist if they fall into arrears again within twelve months of fully settling their previous debts. While the decree does not specify additional penalties for such cases, it clarifies that defaulting on two installments of a payment agreement results in the immediate acceleration of the entire outstanding balance, allowing the administration to demand the full remaining debt without waiting for future scheduled payments. The decree became effective upon its publication in the Official Registry.