Buying property in Panama is very simple to who is used to, but can get very complexed to new buyers, mainly because the purchase and sale process can be very distinct from other countries.
Herein is a basic guideline of the steps involved when buying a property in Panama:
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Choosing the property: unfortunately, in some few cases, sellers in Panama are inconsistent about their final price or even about their willingness to sell;
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Going into contract: as the whole process of buying a property requires many government forms' submissions on the seller's part, a first private contract called "Promisse to Buy & Sell Contract" is signed between the parties, which establishes a term to close that can variate according to the parties needs, 30 to 90 days is typical, hence, the seller receives a downpayment, usually for 10% of dale price, and the buyers garantees his choosen property;
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Government forms: now, while the buyer has the time to coordinate to get the money due from private funds or from a bank mortage, and to organize any legal entity to acquire the property, if decided so; the seller has to pay off any outstanding balance in property taxes with the government, and has also to pay the property transfer and capital gain taxes to the government, which requires some forms to be filed, so he can comply with all paperwork to be ready to go into contract and selling his property;
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Now, once all parties are ready, they get together in the Notary to sign the Purchase Contract;
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Once signed, the seller receives his money, and the buyer the contract, now in the form of a Public Deed, which is taken to the Public Registry for registration, which usually takes one week, so that the property is dully registered in the buyer's name.
Now that you have got a picture of how the process of buying property in Panama goes, please feel free to contact us to get started.
Liane Kraemer
12/11/2011
