I have been an investor in Panama for 24 years. I built Punta malibu, and before that I built 5 houses in Altos Del Maria. It’s safe to say that I know the real estate market well. Yet, time and time again, I see foreign investors applying knowledge from their home market, expecting it would be the same in panama. So, if you are looking to buy or rent in Panama, this is for you.
1. Real estate’s Lease contracts in Panama are basically worthless. Think of it as a simple outline where a buyer and seller have an understanding. However, should the renter defaults and leave before the end of the contract, the owner has no recourse. Yes, the owner can waste his time and money trying to sue for compensation, and while technically the owner can get a judgment, it is practically impossible to collect on any judgement. So, forget about your “good credit”. It does not matter in Panama. A good landlord will always keep the utilities in his name, and will require at the minimum, 1st, last, and deposit.
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2. In Panama, all real estate sales MUST be registered by attorneys. A buyer and seller cannot go and register a sale without an attorney. Normally, the buyer will have an attorney, and the seller will have his. The buyer’s attorney’s job is to verify the deed, and to make sure there are no claims on the title. While reasonable, this back and forth between the buyers attorney and sellers attorneys is time consuming and how legal work costs get padded up. No, it is not an accident?
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2. In Panama, all real estate sales MUST be registered by attorneys. A buyer and seller cannot go and register a sale without an attorney. Normally, the buyer will have an attorney, and the seller will have his. The buyer’s attorney’s job is to verify the deed, and to make sure there are no claims on the title. While reasonable, this back and forth between the buyers attorney and sellers attorneys is time consuming and how legal work costs get padded up. No, it is not an accident?
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3. Under no condition should you give your attorney a power of attorney. Most real estate attorneys in Panama are honest, and do a good job registering real estate transactions. However, there have been a few cases where properties were stolen due to an authority of a power of attorney. You would assume a person could go into the public registry, or Government and demand an investigations, but that option does not exist, without spending a fortune.
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4. If you are looking for bank financing, expect a delay of months. In addition, the bank will require a substantial down payment deposit, and will also requires you to carry a mortgage guarantee insurance..
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4. If you are looking for bank financing, expect a delay of months. In addition, the bank will require a substantial down payment deposit, and will also requires you to carry a mortgage guarantee insurance..
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5. Don’t ever buy a “Right Of Possession” property. If a property does not have a clear title, just walk away.
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Moti Weinberg
Punta Malibu
Punta Malibu
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