Being a beautiful and convenient place to live, Panama saw a substantial number of real estate purchases over the past two years. Buying real estate in a foreign country may look like a challenging process. However, you will see that buying Panama real estate is not that scary.
You don’t have to be present to buy Panama real estate
The best advantage of purchasing Panama homes is that you can make a lawyer or anyone else your Power of Attorney. You can freely browse Panama real estate for sale without thinking whether you will get there on time to buy it or not.
There is also an option to sign the Power of Attorney document while not being in the country. However, have in mind that this process includes the Panamanian consulate, and it may take a bit longer to finish.
Confirm the title of the property
It is not uncommon that the seller informs the buyer that the property is titled. If that happens, you must verify that the title is real.
Ask the seller to send you:
- The Title, also known as the public deed – Escritura.
- The Ownership and Encumbrances Certificate, also known as Certificado de Registracion. It is issued by the Public Registry.
If the seller does not have these documents, ask for the finca number, or the assigned property number. Your lawyer can use that number to search for the official documentation.
If you confirm that the property is indeed titled, you need to request an update of the Ownership and Encumbrances Certificate. Only once you receive the signed and stamped document, you can be sure that the property has no other liens.
Do not buy a home without a survey
This is important advice to follow. If you are considering purchasing land that has not been surveyed before, make sure to do it before you finalize the deal. You should hire a licensed surveyor to help you in the process.
The required documentation
To enter into an agreement for purchasing Panama property, you will need two documents:
- Promise to Buy
- Purchase and Sale Contract
- Copy of your Identification
The Promise to Buy contract is something you should do only if you are seriously considering purchasing Panama real estate. It is binding for both parties, and it includes the price of the property, the deadline for title transfer, important details for the transaction, legal description of the property, a purchase deposit which is usually around 10%, and a penalty fee if either side decides to back out of the deal.
Another piece of advice is to get a good translator because the contract will be in Spanish.
Transferring the title
You can transfer the title either with the help of a lawyer, or the Notary Public. You need to submit the old title and the rest of the documentation. Once that step is done, the Notary will type the new title and the new owner’s name, description of the property, the seller’s name, the location, and any other specifics.
How to pay for the property
There are three different ways to pay for the property you wish to purchase:
- a certified check or money order – Use the wire transfer to send the money to a bank in Panama. Have in mind that there is no currency exchange if you are sending the money from the US. Use the same practice as in the first option, present the check in front of the Notary.
- using a bank or an escrow company – If you pick a bank or an escrow company, you deposit the money and they will issue an irrevocable letter of payment. This letter serves as an irrevocable obligation for them to pay for your purchase. This option is most common if you don’t have a bank account in a bank in Panama.
- your lawyer pays for you – This is the best option, as long as you have full confidence in your lawyer. They know all the legal steps, and you don’t have to think about the payment. However, have in mind that some lawyers will not offer this as an option.
Record the finalized purchase at the Public Registry
The final step of buying real estate properties in Panama is to record the purchase at the Public Registry. It takes about 10 days for the process to be completed. In the end, you will get a signed and stamped document. At this point, you can start the process to transport your belongings via sea or ocean.
Moving to Panama
To find reliable helpers for your international move, we suggest looking into companies that specialize in Panama relocations.
The two most important steps include finalizing Visa documentation and getting a work permit for Panama.
If you are moving to Panama before the purchase of your new home is finalized, you can look into Panama rentals. There are many affordable Panama condos you can rent for a few weeks if needed.
Stay safe when moving
Panamanian government took extensive measures to tackle the Coronavirus outbreak, but it doesn’t hurt to be extra cautious. Always wear a mask and keep a social distance when communicating with the seller. Talk with your lawyer and make sure that all the safety measures are taken into consideration when organizing a meeting.
Key takeaways for buying real estate in Panama
As you can see, purchasing Panama real estate is not as scary as it may sound. The important thing is to prepare and familiarize yourself with all the steps of the process. Know your options, and know what to expect and what to avoid. Stay safe, and good luck with your Panama relocation!