How does the Buying/Selling process work in Panama?
First, you need to make an offer on a chosen property. The offer should be an official, written document stating all terms and conditions that will apply to purchase the property. Your Real Estate agency will draw up this document for you.
Once there is an agreement between the Buyer and Seller on the offer, the real estate office attorney (or the Seller's Attorney) will write up a "Purchase Sale Agreement." This is the legal agreement between the Buyer and Seller. The Buyer will make a deposit on the property, usually 10% of the selling price. The deposit will be transferred into the attorney's escrow account.
After receiving the deposit, the Buyer will have 7 to 14 days (negotiable) to execute the due diligence (checking all information stated in the "Offer to Purchase Agreement" by the Buyer or with Buyer's lawyer) and to execute the money transfer for the balance (if due diligence clear). In case of due diligence do not clear, the deposit amount will be returned to the Buyer.
Meanwhile, the real estate office attorney (or the Seller's Attorney) will write up a "Deeds transfer Contract" for a Titled property or the "Right of Possession Transfer." for an ROP property.
If you are traveling to Panama and intend to make an offer on a property while in Panama, it is essential to meet with your local banker before leaving home to make sure that you have all in place to initiate an international wire transfer. This is important because a purchase sale agreement is invalid until your deposit arrives in the attorney's escrow account in Panama.
You can also pay by certified or a cashier's check from a bank licensed to operate in Panama to the order of the seller to be handed out at the signature of the binding agreement.
Our office attorney speaks English and Spanish. He will explain the Buying/Selling process in detail. He also holds a degree in Real Estate. If you choose to have your own lawyer checking over the transaction process, it will be at your own expense.