Property Buying Guide for Panama

Panama is a perfect place to live in! It offers a lot to those seeking endless natural beauty and tranquility. Its pleasant weather, beautiful and calm atmosphere, tranquil sea beaches, mountain ranges, swift highland streams, beautiful valleys and lakes make it the hottest destination for those who are nature lovers and want to spend a peaceful life there.

Unlike other countries, foreigners can easily buy properties here and they have the same property rights as Panamanians. This is the main reason why foreign investors target Panama Real Estate. The fact is that more and more people prefer staying in Panama as it welcomes foreigners from all parts of the world.  Besides professional real estate investors, the place is open for those who want to buy a home to settle there permanently or for those who just want to spend their vacation there. The affordable prices and the tax benefits provided by the government make it the best place to invest in.

Generally, property in Panama is divided into three categories – government-owned property, squatter’s property and titled property. The titled property is the one that can be sold and bought and belongs to a person. So, before buying property in Panama, know where and what type of property you are buying because different laws apply to different types of property.

Buying real estate in Panama is completely different from buying property in other parts of the world. The laws and procedures are completely different. There are no restrictions on foreigners buying property in Panama.

Here is a list of points that should be kept in mind while looking for a property in Panama:

• Titled properties are the most common option. This is the land that can be sold, bought and owned. Conduct research and make sure that you are buying only titled property.
• Try to avoid any kind of confusion in buying property in Panama. If you are trapped, it can take really long to get out of it because the judicial system’s capacity to resolve the issues related to contracts and property disputes is very weak and prone to corruption. The level of judicial independence has been ranked 103 out of 133 by the World Economic Forum.
• Beware if you are planning to buy property in costal areas as they are not titled and ownership is in dispute.
• Choose your property according to the climate, depending on elevation. Near the Caribbean Sea, the climate is warm and tropical and it rains endlessly during the rainy season. Panama’s highlands have pleasant weather and become extremely cold during the rainy season.
• Though you don’t need a lawyer to buy property in Panama, it is preferable that you hire a lawyer as the ownership of the land you are planning to purchase might be in dispute. It invites an extra cost of $ 500.
• After understanding the above points, buying real estate in Panama is extremely simple. Here is a step by step process that can help you purchase a property in Panama once you have decided on a location or property:
• Carefully go through the details and read the sellers’ terms and conditions.
• Contact the sellers and clarify the doubts and questions.
• The initial phase involves execution of the Promise to Purchase Agreement where the purchaser secures the property by paying 10-20 percent of the overall purchasing amount.
• This agreement sets down the terms and conditions and the final purchase price of the property.
• Both the buyer and seller need to record the agreement at the Land Registry Office.
• Now, the buyer needs to arrange for the finances to make the rest of the payment. The mortgage is easily available in Panama at a typical rate of 6.5 percent for 30 years.
• Next is the Purchase and Sale Agreement that involves the final transfer of deeds on payment of the rest of the amount.
• All paper work is to be finished the same day. Handing over the property keys, fees and taxes need to be taken care of at the same moment.
• Once the deeds are registered under your name with the Public Registry, the property is yours.

Buying a property in Panama is very simple so go ahead and check out this beautiful and diverse country.