The purchase process is not particularly difficult and may not be necessarily different than where you live. Naturally there are some pitfalls to avoid. We are here to help.

Panama is overall good place for expats to consider. It is easy for someone who is visiting and even considering moving here to be a bit overcome with the country and think more emotionally instead of thinking business. This is one way a good attorney will help you to make sure your purchase comes with sensible and honest legal advice that protects you.
Consider the future investment potential of the property. Be careful about considering a piece of property when the buy decision is based on future promises like a road that has not been built or facilities that do not currently exist. What if it never gets built?

If you are retired and have the flexibility to live a couple of hours from a major hospital that may seem like a deal, but if you have health considerations this is likely not such a good idea. In that case consider staying near a major city like Panama or David. Possibly Colon. One of the many abundant things in Panama is the vacant land, there is a lot of it. On the other hand there is not a lot of vacant land in the city and what is in the city is often subject to neighboring developments - big towers mostly. So think about how lovely your view is today but consider what could be next to you tomorrow. The same principle applies in other areas.

Rural areas sometimes have little to no infrastructure. Often a 20 minute or further drive is required to get groceries. Find out if the services like cell phones work there, if there is hi-speed internet and can you get cable or satellite TV. Where is the health care located and what quality - it can vary from limited to very much first class. If there are dirt roads ask about the rainy season. If you like to enjoy dining out, seeing movies, malls, etc ask yourself if you are comfortable with the drive times for such things or would you prefer to be right in the heart of it all.

Many people build a custom home for themselves. Before you do this make sure you understand all that is going to happen. Talk to builders asking them about doors, windows, screens, locks on doors, closets, toilets, light fixtures and everything else you can think of taking nothing for granted - nothing, and get it all in writing. Find out who your builder is and what his reputation is. What happens if your builder runs over his time estimate by a few months and you have already sold your home and are basically forced to rent and wait. Remember you are a foreigner in a strange land and can easily be taken advantage of if you are not careful. Yes of course using an attorney helps and it is important to use one that specialized in real estate. We offer this. Remember not to use one who has any interest in the real estate or who is working for your real estate agent.

A few other points to consider: Make sure the real estate person you use is licensed. We can check on this very quickly for you. There are many people going around selling real estate without a license of any kind, it is not always illegal but it is very questionable, ethically, and it affords you no protections. Reputable and reliable brokers in Panama have proper licenses and insurance as required by law. Also keep in mind that there is no multiple listing service in Panama like there is in most countries from which our clients come from. Most brokers who list property give you no actual fiduciary representation. As a buyer you may consider hiring your own licensed real estate broker to represent you as a buyer. This person should not cost you any commission since the seller pays the typical 5% commission. If the property is listed with another real estate broker then the two brokers will simply split the commissions. This is common practice between the brokers in Panama. You should always have your attorney review the contract as well. We provide this service to our clients.

Financing: This is available with a downpayment. On new houses and condo projects it averages 20% down. Some can get it done with 10%. Older properties usually have larger downpayment requirements. Land is generally not financed by a bank, but sellers will sometimes hold a note. Figure about 50% down and the seller carries the rest.

Foreclosures & Government Deals: This is not a big market, but there is always someone out there who gets foreclosed upon. There is a way to participate in buying these properties and it is generally done directly through the bank in an auction format. The auction is usually a sealed bid. If you are not familiar to this, it means basically all the bids are placed in confidence and secured in advance, then the highest bidder is awarded the purchase. The government is now doing something similar to this as well. They are selling excess assets, some of them from the old canal zone. There are some deals to be had, but you have to exercise a great deal of caution especially with the foreclosures. We do not recommend approaching this type of purchase unless you are already experienced in real estate investing to a certain degree.

Please check back in the future as we update and add articles about real estate in Panama. Meanwhile if you would like to make a purchase or sell existing real estate in Panama, we are here to assist you. Contact us anytime or select below to order.

Real Estate Purchase or Sale Service $1250