One of the fundamental points when buying and / or selling a Property in Panama (Apartments, Houses, Offices, Commercial Spaces, Buildings and / or Land) is that both parties in the transaction are protected. Therefore it is important that the Sales Contract of said sale is well drafted and that it covers all the essential points.
It is important to do the due diligence on the property. This can be done with the Finca number in the Public Registry. The person who signs on behalf of the seller must be the person authorized to be able to sell the property (it can be the owner, or a proxy with its duly registered power, or in the case of a company the person duly authorized by the company).
If you are the future Buyer of a property in Panama, and you are using a Mortgage to purchase it, it is very important to be pre-approved by a Banking or financial institution. This way, one is more comfortable in signing a sales contract for a property in Panama, since you will have the support of said institution to pay the balance of the sales value (Sales value of the property in Panama – the initial payment on the property = balance of the sales value).
The deadlines for the sale of the property must be reflected in the contract. Among them: The time, in case the payment is by means of an irrevocable promise of payment letter, when it must be delivered. When the parties must sign the public deed. When the property is delivered. It is always good to leave everything in writing.
The seller must present a series of documents to the buyer so that he can prepare his public deed. They must be established in the sales contract for the property. Among them: Forms 106 and 107, the certificate of receipt of said forms, the pink bill of payment of said forms, paz y salvo de inmueble, paz y salvo de IDAAN (Instituto de Acueductos y Alcantarillados Nacional), paz y salvo de mantenimiento, minute of cancellation( in case if there is a mortgage on the property by the seller), if the owner of the property is a corporation a paz y salvo de Tasa Única is required, the shareholder’s certificate authorizing the sale.
Another very important issue in a sales transaction for a property in Panama, is that both parties are protected in case there is a withdrawal from the sale, there must be compensation. Therefore the fair and the right thing is that the contract includes a double indemnity clause. This way the buyer is protected if the seller decides not to sell / the seller is protected in case the buyer decides not to buy.
Any sales transaction for a property, it does not matter the type of property (Apartment, house, office, commercial spaces, land, building and / or beach property) is always based mainly on the good faith of the parties and on the interest to sell / buy, however it is very important that the contract is well written and that it protects both parties at all times.
This are only some of the details that a contract must contemplate. With us,VICTOR CONSTANTE REAL ESTATE, you do not have to worry. We Will take care of your interest and hence that the transaction is a success from the beginning to the end.