In Panama, the Real Estate industry is regulated by Law, and so is the Real Estate profession. Whenever a real estate broker is involved in a transaction, a mandatory five percent (5%) minimum comission out of the sale price has to be paid from the seller to the broker, when another arrangement hasn't been done.
This commission is applicable whether the broker has worked A through Z in a deal, or just introduced one property or partie to each other. However, on rental property, the standard commission is the amount of the first month of rent.
Usually Real Estate brokers sign a Commission Agreement with the seller, in order to formalize the relantionship when a deal is established, however, when a deal is done without the existance of such an agreement, the seller is also required to pay the commission, which can be enforced by Court.
Liane Kraemer
12/11/2011
