Purchase Panama Real Estate In Four Steps

By Author: Clint Dixon
Total Articles: 162
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Interested in Panama real estate? Then you must know the rules of real estate. The Republic of Panama is popular as a tropical paradise, so it is no wonder that investors from across the world want to get a piece of land here.

Whether you want to own land to build a house, for reforestation, or to build a beach-front resort, you must be familiar with Panama property matters, including registered value, limitations, impediments, tax rules, official blueprints, and many other considerations.

The two most common ways to own Panama real estate are: buying a titled land and buying a "Right of Possession." The latter is for land found in areas historically protected, one of them being the "Portobelo," situated in Colon Province.

Steps To Purchase Titled Property

The Public Registry System of Panama is one of the most trustworthy ones here. You can get information on Panama real estate for sale in this Registry. Here are the steps to follow:

* Carry out a due diligence of real estate. This includes a thorough title search, checking tax good standing in land as well as in utility bills, checking ...
... other characteristics of land, finding out the limitations and impediments. You must hire a professional land surveyor who will inspect the real estate with appropriate blueprints to check the map points, boundaries, and measurements of area to avoid land conflicts in the future.
* Formulate a "Promise to Purchase" agreement. Through this agreement, you can secure the land by making a down payment up to 10-20 percent of the total price. In the agreement, the buying and the selling party agrees to the price and terms of the contract, plus penalties in case of breach of contract. This agreement is listed in the Public Registry to ensure that a third party does not buy it. You can also find Panama real estate listings in the Registry.
* Formulate the "Purchase and Sale" Agreement. This is the final contract prepared when all the payment is done for Panama real estate by the buyer. This is the time to process the Capital Gaining Tax and Property Transfer Tax by the seller to get a good standing certificate on land and utility. You, as athe buyer, need to pay for registration and notaries. Don't forget to include an indemnification clause that helps in case of property defects.
* Become the owner of Panama real estate. After the registration of the public deed, title transfer takes place and you become the owner of the property.

For the maximum benefit in such titled investments, you must get title insurance. This is quite popular and almost a norm in America. The Panama real estate owners have widely accepted such insurance. Besides, the laws of Panama are such that they allow investors from across the world to put their money on this land.
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