Buying Panama property could be tricky but we got you covered, here we give you our best 5 tips to do it safely.
As a foregigner you might be overwelmed by the tons of information you get out there in the vast internet world, by the way sometimes parts of all the information could be wrong.
So lets Start
Find the right place.
Even do Panama is a relatively small country there are many options as of where to go or most important, where to buy. You first need to stablish what type of purchase you are going to do, it is a retirement place that you are buying or is it an investment… If the idea is to buy a plot to build a retirement home or buy a home that is already built for your retirement you have to experience what living in that area you have chosen is like, we recomend you rent a place for a couple of weeks or a month to get the feel for the area and once you are sure that is where you want to be then you buy.
If the idea is to buy an investment, you are not obligated to know what it feels like to be in this place but on the other hand you need to look at the potential for a return you have in the future. Look at things such as if there are already too many ”investors” in the town, or if on the other hand there are not too many and you still would have a chance to buy for relatively good price and sale higher in the future. Ask the locals is there are any projects coming soon, etc Buying Panama property can be a very good invesment even now on 2021 if you make the right purchase.
Locate the desired Property
You might be looking for a mountain property but for me I prefer Beach front, so once you have identified the area where you want to make a purchase, you look for properties righ? I have learned that the best deals are always thouse that not many people know about and a good to find them is by asking the local people like taxy drivers, restaurant wokers, hotel staff, etc, so if you can ask around if they know anybody selling a property (you tell them what type of property you are interested on) chances are you actually find something worth looking at and may be buying.
If you are interested on foreclosures we recomend you check out: panamaforeclosure.com
Investigate the property ( due Dilligence)
Let’s say that you already stayed in some place for a month and by talking to a taxy driver you have founded a very promissing property, it is always important to make sure the property can be bought and by this I mean buying it and not have issues later, so you need to make sure it either has a clean title or if the property is rights of possession make sure it is also owned by the person offering it for sale (if you are not familiar with right of possession term check out this article where we explain it).
So how you do that? Same way you would do it anywhere else, when buying Panama Property you need to hire an attorney. If you know some spanish you can do some research yourselve specially if the property is titled because all history of titled properties is public information and it can be accesed from the public registry of Panama website, on this page you just create an user to login with (it’s free) and with the property ID number known in Panama as Finca you can research the property but that is only to do a quick research, you still need to hire a good attorney for the Due Dillingence and that way you make sure the property is clear of issues and when you buy it you can rest assured that no issues will surface in the suture.
If the property is not titled, known as right of possession, you have to have, I am going to say it again, you have to have an attorney review any documents the owner may have to proof ownership. With rights of possession the ownership is proven with documents, all papers need to be original and in good shape and the attorney needs to check if they are legit. Also it is very recommended to go out and ask the neighbors who ows the property you are trying to buy to make sure it is owned by the person you think owns it.
Do not make payments without a legal notarized contract
Yes, this is very important unless you have a ton on money and don’t mind taking chances to lose some of it but thinking that you are a person like every one I know, you should not give money to anybody as downpayment for a property unless you have a legal and notarized contract.
I have see people that got too exited about having a great deal in front of them that went ahead and gave deposits to people to later find out that the person given the money to was not the owner of the property. The best and safest way is pay when you have it on writing.
Bills up to date
This may sound odd but, make sure before you make the payments on a property that all bills are paid, specially the water bill.
With titled property it is necesary as part of the title transfer process for the water bill to be paid as the seller has to provide a “paz y salvo” (good standing letter) from the water company (Idaan) in order for the transfer to be completed but when it comes to right of possession property buyer and seller may not think of this and could be an issue later. You may be wondering why. In this country when you dont pay the power bill the services gets cut off pretty quick and so the bills does not getting bigger and bigger but with the water service, a property owner may not pay it for months or years making the unpaid balance very large and you dont want to buy a property with unpaid water bills and later on find outstanding bills for thousands of dollars. We have seen this happen and I know local people that own houses and their balance is $1,000.
You may also be thinking why would I pay a bill that is on someone elses name? the answer to that is: in Panama the water bills are attached to a property not to a person. send us an email if you want to know more about this topic.
If you have interest in Buying Panama property please take a look at thouse properties we have for sale, as of the day of typing this post we have beach front property starting at only $19,000.00
Chek them out Here