Panama Real Estate Evictions
Below is a MRR and PLR article in category Business -> subcategory Other.
Panama Real Estate: Understanding Evictions
Overview
At Panama Legal, our law firm often receives questions about the eviction process for residential real estate in Panama. Here, we outline the process and its timeline as an informational guide, not legal advice.
Applicable Law
The eviction process for residential real estate in Panama is primarily governed by Law
93 from 1973. However, certain types of leases are exempt:
- Rural property leases
- Properties in the reverted Canal Zone
- Short-term rentals like hotels, motels, bed and breakfasts, inns, etc., where rent is calculated daily
- Vacation properties leased for under 180 days, including renewals
- Government-involved leases, unless the government is a party in the lease agreement. In such cases, eviction provisions can be applied.
Rental Values and Lease Terms
For properties with an initial rent over $150 per month, rent increases can be mutually agreed upon in the lease. There is also flexibility in setting the lease duration, with options for extensions available.
Lease Cancellation and Security Deposits
Tenants may cancel any residential lease with 30 days' written notice. Typically, a security deposit equal to one month's rent is submitted to the Panama Housing Ministry. This deposit is returned at the lease's end unless the landlord claims damages.
Eviction Proceedings
Eviction proceedings generally take around 120 days. If rent is unpaid, collecting it can take up to 270 days. High court workloads may prolong these timelines, but quicker resolutions are unlikely.
Conclusion
The eviction process in Panama can be lengthy. While some countries may have shorter eviction procedures, others with significant homeless populations have expedited processes.
Landlords renting to expatriates should be cautious, as tenants might suddenly leave Panama without settling the last few months' rent. They might have already secured their assets abroad, making recovery difficult.
If you're a landlord concerned about leasing to foreigners, our law firm can assist in crafting lawful protection measures.
It's crucial for landlords to avoid self-eviction practices, such as disconnecting utilities or changing locks, as these actions can lead to tenant counterclaims and prolong eviction timelines. Always seek competent legal counsel.
For assistance or to discuss safeguards, feel free to contact Panama Legal.
You can find the original non-AI version of this article here: Panama Real Estate Evictions.
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