What is real estate development?

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The lack of understanding about what real estate incorporation is , as well as the legislation that regulates this process, in addition to the contractual aspects, usually generates a series of complaints to consumer protection agencies.

In general terms, the purchase and sale of real estate involving developers is a very common negotiation. These are houses, apartments and commercial units in condominiums, also known as independent units, which can be sold, even when they are still a project on the drawing board.

Thus, real estate development involves planning, structuring and the stages for carrying out the project. As this process often involves advance payment and subsequent receipt of the product, the legislation exists and is of interest to the consumer , as it protects their interests.

On the part of developers, the rules in this area are of interest for reasons of risk management and compliance , after all, it is essential for any business activity to avoid defrauding the law and having tax problems.

To better understand this topic, we have prepared this article with the main concepts of this process. Enjoy reading!

Real estate development is a set of processes aimed at the construction of developments with autonomous units for the purpose of alienation, that is, their sale while still in ecuador mobile database the planning stage or in a construction process to one or more people.

This type of real estate transaction is governed by Law No. 4,591/64 , replacing DPL5481/28, which dealt with the sale of buildings with more than five floors.

Developers, whose figure is defined in art. 29 of the current aforementioned law, include people or companies that are responsible for carrying out a real estate project on a plot of land that belongs to another owner. In this way, a property is incorporated into the land.

In addition to the construction part, this type of activity involves the marketing of units under construction or to be built, in which buyers become investors.

From the perspective of purchasers or transferees, it is essential to pay attention to the incorporation memorial, a document in which the developer undertakes to deliver the properties in accordance with the legal conditions and characteristics specified in the act of sale.