Panama Real Estate Purchase Process
Below is a MRR and PLR article in category Business -> subcategory Other.
Panama Real Estate Purchase Process
Overview
When it comes to buying property in Panama, there are three main categories of property transfer. Here, we'll focus on the most common: Titled Property. It's essential to proceed with caution and always seek legal assistance, especially when dealing with land use rights and squatters' claims, which can be complex and contentious.
Titled Property in Panama
The Panamanian Public Registry oversees the registration of all titled real estate. During a property purchase, you can verify clear title through a title investigation. Panama's Constitution ensures protection of property rights, and properties valued over $30,000 are subject to real estate taxes unless exempt as new properties for up to 20 years.
The Purchase Process
Promissory Purchase Agreement
Typically, a 10% down payment is required for this agreement, which is negotiable. The contract should be in Spanish and registered in the public registry to safeguard your purchase. This agreement gives you time to conduct due diligence, secure financing, and set up escrow.
Title Search
A title search ensures that the property is free from encumbrances, liens, taxes, and other concerns. It's crucial to verify the survey map with a professional to confirm that the property boundaries are accurate and match the registry records.
Purchase Contract
This is the final document filed in the public registry. The title is transferred once the seller provides clear title, often coordinated with payment through escrow.
If the property is held by a Panama Bearer Share Corporation, the title remains under the corporation's name, and only the ownership of corporate shares changes. New shareholders usually replace nominee directors and the resident agent. Annual fees for such corporations vary, so it's important to confirm them beforehand.
Ensure no outstanding fees, like the $300 Tasa Unica, exist. If there are arrears, they must be settled, and assistance from the current registered agent may be required, potentially incurring additional costs.
Legal Assistance
Our law firm offers comprehensive assistance for your real estate purchase, ensuring a smooth and secure process.
Feel free to reach out for more information and guidance.
You can find the original non-AI version of this article here: Panama Real Estate Purchase Process.
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