Foreigners are buying real estate in Panama every day. The only, kind of property a foreigner should buy is titled property. Titled property allows you to get a mortgage. Untitled, right of possession or right to use property is common in the interior of Panama and is very treacherous ground for the unwary. Title insurance is available and a must, especially when buying real estate in Panama, or in any foreign country.

New construction benefits from twenty years free of property taxes. However, you should hire a local attorney qualified in property law for issues such as building permits, and restrictions, including environmental impact studies.

Current construction costs range from $30 to $40 a square foot.

Where to Go and Whom to Trust When Buying Real Estate in Panama

When buying real estate in Panama, obtaining the services of a qualified realtor, such as ABPanama, is very important. There are many great deals left and a qualified realtor can find them for you. Compared to the USA Panama is a small country but it has housing opportunities on two coasts, mountain hideaways, and city living. Hiring someone like ABPanama assures you that when buying real estate in Panama you get the best deal possible at the best price.

With the real estate boom in Panama, especially Panama City, there have been realtors from other Latin American countries operating in Panama. The local news has carried articles about property "sold" to foreigners that was not being offered for sale by the owner, property sold but not registered and thus not property transferred, and cases of out and out theft of down payments as well as checks for the balance on apartments and houses. In most cases it seems that the individuals operated in Panama for months to a year and then left, with the money. When buying real estate in Panama get the services of a qualified realtor, such as ABPanama.

Buying Real Estate in Panama, the Process

The process of buying real estate in Panama includes a Promise to Purchase Contract. This involves a small down payment which secures the property and allows time for a title search and to coordinate payment prior to the closing. To ensure that the property is not sold to another party you must register this contract with the Public Registry.

The Title Search, as in the US, verifies that the seller has the title and the right to sell the property. In addition the title search checks for liens and other matters that could affect title transfer such as utility debts and nonpayment of property taxes.

When the Buy Sell Contract is signed legal right to the property is transferred and the final balance is paid to the seller. Again this contract is registered with the Public Registry.

Buying real estate in Panama requires the services of a qualified realtor such as ABPanama. We can also suggest legal support where needed and have the experience to avoid pitfalls in buying real estate in Panama.

Much of the above information regarding buying real estate in Panama can be found on the US Embassy Web Site for Panama. This site is not directly accessible using the address below. At the embassy web site enter "panama property" in the search window.

US Embassy