The real estate (known as bienes raices in Spanish) industry is alive and well in Panama. Investment laws and incentives enacted by Panama's government have encouraged growth in this key business sector along with providing a stable, standardized environment for conducting real estate transactions. Real estate brokers are regulated by the government and trained to help buyers and sellers successfully navigate the investment process

In order to be a real estate broker in Panama, it is necessary to have a professional capability license. This certificate is issued by the Real Estate Technical Board (or "Junta Técnica de Bienes Raíces") of the Republic of Panama. Panamanian citizens and foreign nationals who have resided in Panama for over 5 years are eligible to request this license, as long as they pass the professional examinations required by the technical board and do not have any problems complying with the other mandatory requirements.

Real estate brokers in Panama are trained to offer other services that reach well past the responsibilities of a real estate agent in the United States. These services include such things as:

• Property appraisals.
• Periodic reports on concrete marketing actions.
• Legal and financial counseling.
• General counseling services.
• Negotiation and closing of commercial transactions.
• Preparation and processing of the corresponding legal documents.
• Procedures after the closing of the transaction, such as: collections, payments, registrations with the Public Registry, etc.

Condominiums and community development agents are regulated under the Horizontal Property system, which was created by Law 13 dated April 28th, 1993, and by Executive Decree No. 39 dated November 7th, 2001. Many of these agents are members of ACOBIR ("Asociación Panameña de Corredores y Promotores de Bienes Raíces / ACOBIR"), the bienes raices association of Panama, and they are dedicated solely to the market of horizontal properties.

The standard rule for real estate commissions it five percent. This amount is not a part of Panama's real estate incentives or laws and is open to negotiation between the broker and the client. This fee is then included in the purchase agreement and the broker is paid at the time the property closes.

Empowered by Executive Order No. 6 and dated July 8th, 1999, the Real Estate Technical Board of the Republic of Panama has the authority to hear arguments presented regarding any conflict that arises between two parties in a real estate sale. This board has the power to act as an arbitrator and impose the corresponding sanctions, should that be necessary. ACOBIR has a strict code of ethics for its members. The ethics committee may act as a conflict mediator, applying the corrective measures it may deem appropriate. This mediation / arbitration ability is an additional benefit for those who do business with real estate brokers that are members of ACOBIR.

Both buyers and sellers have an extra layer of protection when using certified real estate brokers; for foreign investors, this is especially true. Having a skilled, Spanish speaking representative that is acting on his or her behalf can be a great source of comfort when trying to understand Panama's real estate incentives and laws.