Before you reserve a property in Panama, ask two questions: Who is acting for me, and what happens to my money if the deal does not close? Get both answers in writing before you sign a reservation form or transfer funds.
Who does what in the transaction?
| Person | What to clarify |
|---|---|
| Seller or developer’s sales team | Who can commit the seller to the price, delivery date and terms offered? Which promises will appear in the contract? |
| Real estate broker | Who engaged the broker, what services are included, and who pays the fee? Ask for the licence number and confirm how to verify it with the relevant authority. |
| Your independent lawyer | Who is the client, what will the lawyer check, and when will you receive the findings? Agree on the scope and fees before work begins. |
A broker can help you find and compare properties. Ask your own lawyer to assess the seller’s authority, review the contract and explain what happens if either party fails to perform. Panama’s Ministry of Commerce and Industries provides information on its real estate brokerage oversight and complaints process.
What should you check before paying?
Before paying, give your lawyer the property’s registry identifier and the seller’s full legal name. Ask for a review of current Public Registry records to establish who is registered as the owner and whether any mortgages, liens or restrictions are recorded. If the seller is a company or someone is signing on the owner’s behalf, ask your lawyer to verify that person’s authority separately.
Ask your lawyer to explain what must be resolved before you sign or transfer funds. For the distinction between property and company records, see our Panama registry guide.
Then review the payment terms:
- Amount and recipient. How much is due, who receives it, and how will you independently verify the account details?
- Credit towards the price. Will the reservation payment or deposit be credited at closing?
- Refund and release. What happens if title checks raise a problem, the seller cannot complete, or your financing falls through? If you are relying on a condition, ask for it to be written into the agreement.
- Deadlines and evidence. When do you have to sign, pay or object? What documents must the seller deliver before the next payment becomes due?
If the seller offers to hold the unit while you review the documents, ask for the holding terms in writing. If someone describes a payment as escrow, ask who holds the funds and what the agreement requires before they can be released.
What changes when you buy off-plan?
A finished home can be inspected before closing. With a property under construction, much of what you are buying is a promise about future delivery. Compare the contract with the plans, specifications and dates you were shown. Check when instalments become due, what happens if construction is delayed, and whether the contract lets the developer change the unit or its specifications. See Off-Plan Property in Panama.
Does buying directly save money?
Compare written offers for the same unit and terms. Look at the total price, included items, closing costs and any fees payable separately. Ask the developer whether buying directly changes the price or incentives. If the answer affects your decision, ask for it in writing. See Purchase Costs in Panama.
If the purchase is part of a move to Panama
Tell your lawyer before signing if you are also considering a residence application, buying through a company or planning to rent out the property. Ask what should be checked before you choose the buyer named in the contract or commit to a payment schedule.
Already have a reservation form or draft contract? Have the proposed terms, property details and payment instructions reviewed before you sign or transfer funds. Fischer & Cie. provides legal representation for property purchases. Property searches and brokerage are handled by licensed brokers. Discuss your purchase with Karen Dorcy.
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