For expats wishing to buy property in Panama (including panama rentals), they will realize that they can do this with very little or no problems at all. This is because they have same rights as those of Panama citizens, except for a few restrictions. One being that as an expat in Panama you can’t buy land or property in Panama that is within 10 miles to the borders of either Columbia or Costa Rica.
The fact that Panama has continued to become a popular place for expats who have continued to invest in Panama real estate is undisputable. It has continued to becoming a favorite place especially for retirees and also due to the fact that property there is relatively less expensive. The procedure for purchasing a property in Panama is almost the same as to what it is in other countries.
In Panama, Property is categorized into two
- First is titled meaning you are the owner of the freehold property.
- Then there’s “Right of Possession.” This is almost the same to leasehold whereby you do not out rightly become the owner of the property
Possession rights cannot be used for raising Panama Mortgage and they cannot help an expat out rightly qualify for an investment visa.
When purchasing property listed under homes for sale in Panama it is vital to get Legal advice. Lawyers can be very helpful when it comes to research and will also help in the process of undertaking validation and a number of other security checks. Also when going for Panama rentals, get a Legal advice so that you are making an informed decision. When finding a Lawyer make sure you are asking around from your fellow expats. This will ensure you do not fall in to a dubious Lawyer who may know nothing about real estate in Panama.
Though the sale contracts needs to be in Spanish, one can request for an official translation to be availed to you. Contracts differ but ideally they must have information on method of payment, the terms as what the seller and buyer are obliged to and any penalties that either part stands to incur should there be a breach of contract. Before signing the final contract, a deposit must be paid. The deposit ranges from 3 % and can go up to 20%. You can live in Panama comfortably. The deposit payable depends on the value of the property. It is important to note that this can be lost if in the last stages of undertaking purchase, you change your mind. Thus it is important that you make up your mind before committing money.
Then a survey is carried out to confirm the soundness of the building in terms of structure as per the descriptions provided by the seller.. If there are any problems pertaining the property they can be dealt with at this stage or negotiated with the buyer before finalizing the sale. This is almost similar even for Panama mortgage.
The seller of the must a make a legal declaration and provide all the requisite documentation proving that there’s no legal reason for not selling such as if there are any legal disputes or any debts pertaining the property. If there are any outstanding bills attached to the property or any fee for maintenance they should be settled before transfer of ownership. The seller should ensure that if there’s a mortgage on the property, it should be dealt with accordingly.
After all matters have been taken care of both the seller and buyer can go ahead and sign the deed of sale. This needs confirmation by a Notary Public. The document is then sent to Public Registry for proving that there’s no debt that is due on the property. Then undertake authorization for property transfer to the buyer. Provided there are no last minute problems, this process can take a maximum of 10 days. After which the copy of deed of sale is taken to the Registry Property and the sale is final. You can now live in Panama in your own property.
