Panama Real Estate Purchase Process

Panama Real Estate Purchase Process

Panama Real Estate Purchase Process
Panama has three different categories of​ property transfer but we will deal with normal Titled Property .​
Much litigation concerns the​ purchase of​ land use rights and​ one needs to​ exercise a​ great degree of​ caution with these situations and​ not try to​ figure things out for​ yourself but instead use a​ lawyer, better yet avoid these properties all together .​
The third kind of​ property transfer is​ basically squatters rights and​ we will consider that an​ obscure method for​ the​ purposes of​ this website.
Panama Titled Property Purchase
The Panamanian Public Registry basically controls the​ registration of​ all titled real property in​ the​ Republic of​ Panama .​
One can verify clear title in​ the​ Panama Public Registry in​ the​ course of​ a​ title investigation or​ report .​
The Constitution of​ Panama preserves ones rights to​ have title property rights protected under the​ law of​ Panama .​
If the​ real estate that is​ registered in​ Panama has a​ valuation in​ excess of​ $30,000 it​ is​ subject to​ real estate taxes unless it​ has the​ exemption granted to​ new property for​ 20 years.
Below is​ a​ rough sketch of​ the​ Panama Real Estate Purchasing Process .​
Never try this without an​ attorney .​
a​ real estate broker is​ not a​ replacement for​ an​ attorney.
Promissory Purchase Agreement - Generally a​ 10% down payment is​ required with this agreement although like anything else this can be negotiated .​
This promissory purchase agreement or​ contract should be in​ Spanish (having an​ additional translation into another language as​ well is​ fine) .​
The agreement should be entered into the​ public registry in​ Spanish thus securing the​ property for​ your purchase preventing it​ from being sold out from under you to​ another buyer .​
The Promissory Purchase Agreement gives you the​ time to​ conduct due diligence on the​ property, arrange financing or​ payment, set up an​ escrow etc.
Panama Title Search - This is​ to​ a​ large extent what you are used to​ in​ your home country .​
One wants to​ make sure the​ selling entity has clear title to​ the​ real property free of​ any encumbrances, liens, utility bills, taxes, and​ other filings that could interfere with the​ clear transfer of​ the​ title .​
One would also check the​ survey map (use a​ professional) to​ make sure all is​ in​ order on what is​ being sold physically in​ that the​ boundaries match what is​ on file in​ the​ registry, you don?t want to​ be buying something other than what the​ seller has the​ lawful right to​ sell.
Panama Real Estate Purchase Contract - This is​ the​ final purchase document that will be filed in​ the​ public registry .​
Title shifts when the​ seller delivers clear title and​ an​ escrow can be used so the​ payment and​ the​ title shift at​ the​ same time .​
This contract is​ registered at​ the​ Public Registry and​ the​ final balance is​ paid to​ the​ seller, or​ an​ escrow agent .​
If the​ title of​ the​ real property being transferred in​ vested in​ the​ name of​ a​ Panama Bearer Share Corporation (very common in​ Panama), there is​ no transfer of​ title name since it​ is​ the​ corporation that still owns the​ title of​ the​ real property, what is​ being done is​ a​ change of​ ownership of​ the​ shares of​ the​ corporation .​
Normally the​ new owner of​ the​ corporation would get resignation letters from the​ existing nominee directors and​ replace them .​
It would be normal to​ also replace the​ resident agent .​
Before you decide to​ keep or​ change the​ existing nominee directors and​ registered agent make sure you know what the​ annual fees are going to​ be each year for​ the​ corporation .​
We charge $695 a​ year complete with government fees, nominees, and​ registered agent .​
Some brokers will give you the​ corporation for​ free and​ charge you $1400 a​ year in​ annual fees which is​ good for​ them not you .​
One should make sure there is​ no past due balance on the​ corporation like the​ Tasa Unica which is​ $300 a​ year and​ that the​ nominees and​ resident agent are paid up current .​
If the​ Tasa Unica is​ in​ arrears you will need to​ bring it​ current to​ change the​ directors and​ registered agent and​ you may need the​ old registered agent to​ do this for​ you and​ they may charge high fees for​ this especially if​ they determine you are replacing them.
Our law firm will be happy to​ handle your real estate purchase from start to​ finish for​ you .​

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