REAL ESTATE IN PANAMA

Even if you don’t plan on retiring or living in Panama, it is also rated the very highest in real estate investment opportunities for those who would like to make their money from a distance.

If, like many expats, you plan to pay cash, your bank will provide the same service for a fee. Check fees with several banks, but HSBC is competitive. An expat buying real estate in Panama has exactly the same rights and protections as a native Panamanian. Rules are in place to protect both buyers and sellers but they are different than in the U.S. and Canada. You need to be aware of all the differences when buy real estate in Panama.

As in North America, you can sign a preliminary contract, known as an Offer to Purchase, to give yourself time to arrange financing. This type of contract can also be used when the seller has certain conditions to be met before you are willing to close the deal. List contingencies here under which you can back out of the purchase unless all your conditions are fully met. You should have legal advice in preparing a Promise to Purchase. Mistakes can be too costly. An Irrevocable Promise to Pay, issued by the bank doing the financing, is a common instrument here. Payment to the seller is contingent on receiving proper title to the property.

Title Insurance
Even though Panamanian laws are set up to protect foreign investors, you should always take precautionary measures to insure your investment. Title insurance I s recommended for all property transactions, and is readily available in Panama through major international title insurers, such as, Land America Lawyers Title, First American Title Insurance, and Stewart Title. Title policy costs are minimal and the peace of mind is definitely worth the cost.

Useful Tips On Buying Property In Panama
So you have just found that piece of paradise you’ve been looking so hard for and you are ready to close the deal? Before you hand over any money, make sure you consult with a professional and do a proper due diligence investigation over the property to ensure you aren’t buying a big problem! Buying property in Panama can be a great investment and is very safe, however it is important to understand the rules and process your property transaction correctly.