Buying Property in Panama: A Comprehensive Guide for Foreign Buyers

Are you thinking of buying property in Panama? If you are, there are a few points to consider which go beyond the idea that you are buying land in a foreign country. Real estate agents that operate in Panama are diverse, however there are some that are familiar, just like Century 21. Purchasing property in Panama is not all that distinctive from purchasing property in the states, but there are specific items you must pay attention to to be able to be sure that the sale is totally legal. Negotiating To Purchase Property In Panama Negotiating to purchase land in Panama is slightly different than it would be anywhere else, and you should be certain to get everything about the transaction in writing. If you are dealing with a real estate broker directly, then it should be no problem. Real estate brokers will record every detail of transaction out of habit. But, if you are dealing directly with the seller, be sure that everything that the two of you have decided gets into the contract, particularly the cost and any down payment. Be sure to take that contract to a legal professional to finalize. The Promise To Purchase Contract In Panama, an agreement to buy real estate is known as a promise to purchase contract. Also called a purchase and sale contract, here both purchaser and seller will first sign a promise to purchase contract which will secure the property under negotiation. The customer pays off a small advance payment on signing the promise , and then performs a title search to verify possession. Title Search Unlike real estate somewhere else, performing a title search on property in Panama is almost obligatory. There are so many various ways that a person can gain access to, and claim ownership of any land parcel within reason. The title search will reveal whether or not the property in question was ever registered in the seller's name, and also whether or not he or she presently owns it. Draft The Buy-Sell Contract Once you have completed the title search, and all things have been found positive, you would then be advised to return to the attorney, and have a buy-sell contract drafted. This contract is the final step required to purchase the property, and will be registered with the public registry listing you as the single owner. If you do not have this registered, then you will be unable to transfer the deed to the land, nor have got lasting rights for that property or home. The last payment on the property is now due to the seller. Final Title Transfer The final step required to purchase property in Panama is the title transfer. This is a phase that normally would be known as closing in the states, and property ownership legally transfers to the purchaser when the title has been transferred and also signed. Title should then be registered with the public registry, to make the official government records.