Panama offers a strategic geographic location and a constantly growing economy between the Caribbean Sea and the Pacific Ocean waves. Thanks to these factors, we have a vibrant real estate market in which nationals, foreigners, and companies are eager to participate. If you are one of them, as a real estate lawyer in Panama, I recommend that you understand the legal aspects before embarking on this investment journey.
Legal framework for property’s purchase
Panama has a robust legal system where nationals and foreigners can enjoy the same rights and duties to buy or sell property.
Numerous laws regulate the country’s real estate market, and complying with legal processes and due diligence guarantees the safety and legitimacy of your investment.
Some of these laws are:
- Civil Code of the Republic of Panama: Regulates real and personal property and the purchase, sale, or lease of such property.
- Real Estate Brokerage Law: Regulates the profession of real estate agents and brokers within the country, seeking to ensure that legal and ethical practices benefit and protect buyers and sellers.
- Law 179 of 2020: Creates the figure of financial leasing, also known as leasing, for real estate.
It is important to emphasize that depending on the type of property and the place of location, other national and local laws may be relevant in the purchase and sale of the property. Therefore, each case must be analyzed individually.
Types of Properties
A real estate investor must know the difference between the types of properties regulated by law to understand any real estate purchase negotiation and legalization process.
- Property Deed: This document is registered within the National Cadastre Department. It is easily verifiable in the Public Registry System.
- Possession of Property Rights: It is one of the pillars of the property’s rights. It consists of the exercise and use of an asset.
- Concession on a State Property: On a State property, a concession is issued for a specific time to a natural or legal person to fulfill a particular objective with it, such as a real estate development or a tourism project.
Due Diligence: A Non-Negotiable Step
Before money changes hands, conducting a thorough due diligence process is essential. This step involves verifying the title deed, checking for liens or levies, and confirming that the property complies with local zoning and building codes. For this reason, we recommend that you seek the advice of a real estate attorney in Panama.
This process can be cumbersome for nationals and foreigners unfamiliar with the Panamanian legal system. Conducting a detailed legal inspection of the property requires in-depth knowledge of the legal framework and the functioning of multiple state institutions.
The Role of a Lawyer
At this point, the work of an experienced Real Estate attorney in Panama stands out thanks to his knowledge of the intricacies of local and national property law to provide the specialized guidance that a real estate investment requires.
At MCA – Law Firm, we guarantee that your process complies with due diligence. We seek to ensure that all legal requirements are met, from the correct registration of the property to the guarantee of your rights as an owner.
We have helped countless nationals and foreigners looking to secure their housing in the country, and we can help you. Do not hesitate to contact us.
