[Economics] In Ecuador, public deed and mortgage issuance are already carried out electronically: what is the process like?

[#Steeven.™]

Mutualista Pichincha is one of the first institutions to carry out the process. Among its eventual clients are migrants.

Mutualista Pichincha has just finalized by telematic means the first public deed of sale and mortgage process for a home in the country. The process was carried out from the first days of April and lasted 17 days.

It is a procedure that seeks to save time and costs for all the actors involved in this transfer of ownership from the seller to the buyer, as well as the improvement of the mortgage, which is the guarantee of the credit that is issued. An important group to which this facility will be directed is migrants.

The procedure is similar to face-to-face, but it is done through the use of technological tools. Thus, the buyer, seller, notary and a representative of the mutualist enter a digital platform, the certified electronic signature is used, it is sent to the Property Registry, then it is registered and the Registry sends the certificate.

"With this, Mutualista Pichincha breaks a paradigm of decades, since until now it has been considered that this type of procedure must be done in person," says Carlos Soria, legal manager of Mutualista Pichincha. Normally this process included going to a notary, going to the Municipality and the Property Registry. However, thanks to the coordination between qualified legal studies, the Ministry of Housing, the Ministry of Telecommunications, the process can now be carried out digitally, he explains.

Among the advantages of this type of process, Soria points out, is the significant reduction in processing times, up to 50% or even more; Cost reduction is also generated, less paper, logistics and operating expenses are not paid. Soria points out that this digital process facilitates the connection of people, without the need to go to the notary's office. It is only necessary that one of the people is domiciled in the Quito canton to be able to carry out the procedure. The placement of credit, therefore, is much faster as well. "This boosts the mortgage and housing sector," he says.

Soria ensures that security risks are minimized and that part of the digital process is to verify the identity of the participants and validate the documentation.

According to Mutualista Pichincha's calculations, what will happen in the coming years is that there will be a duality of processes, depending on the customers' taste. Considering this, it is expected that in the initial phase there will be 30% to 40% of procedures that are digital; but in a few years 100% of the processes will be completed. A special segment that will be sought to reach is migrants, says Soria. The facility is that Ecuadorians abroad do not even have to go to a consulate, nor do they have to obtain a work permit.

 

How is the procedure?

• The buyer must have approved the credit in Mutualista Pichincha.
• If Mutualista clients do not have a certified electronic signature, they are helped to obtain the electronic signature (through legal providers).
• Obtaining the signature takes 15 minutes and can cost between $7 and $15, depending on how long the signature lasts. This can be used in any other procedure.
• Mutualista assigns a legal study the procedure and this is in charge of the analysis of titles and structuring of the purchase and sale contract and the guarantee contract, then the documentation is sent to the public notary.
• The notary who has the matrices for these procedures summons the parties to a telematic procedure that is recorded and endowed with solemnity.
• The videoconference procedure is through any of the digital platforms (Zoom, Google Meet, Teams, etc.).
• The document is read and if the parties agree they sign electronically.
• This document returns to the legal study and is sent to the Property Registry and on a digital platform the registration of the real estate is carried out in favor of the buyer and the perfection of the mortgage deed, which is the guarantee of the credit operation.

 

According to Mutualista Pichincha, the service complies with the highest security standards: availability, confidentiality and integrity, which guarantees that customer information is kept protected at all times, thanks to current legal regulations, especially the Law Electronic Commerce, Electronic Signatures and Data Messages (Law No. 2002-67).

 

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