What do I need to know when buying a house or other real estate in Panama?
Renate Jope - Panama Premium Real Estate
Of course this is a personal opinion, I believe that a good Real Estate agent whom you trust is very advisable. So much so that he or she should become your friend and represent you with everything you need to undertake for this purchase....making sure that the land/house is free and clear with title and mortgages etc. The normal due diligence anybody would go through anywhere else in the world. We as Real Estate Agents all work together, so it behooves you to find a...
Of course this is a personal opinion, I believe that a good Real Estate agent whom you trust is very advisable. So much so that he or she should become your friend and represent you with everything you need to undertake for this purchase....making sure that the land/house is free and clear with title and mortgages etc. The normal due diligence anybody would go through anywhere else in the world. We as Real Estate Agents all work together, so it behooves you to find a trusted one and stick it out to the end.
It's really a pretty efficient system here too, if all possible "title" problems are out of the way.
It's always easier to buy with cash as bank loans take time and lots of paperwork.
And I would invest in a lawyer to represent you, not hard to find in Panama.
Posted February 24, 2013
David Whittington - Tucan Golf Club and Resort
When buying a house in Panama, you need to know that every area in Panama may have its own unique things to be aware of. For example, in some of the smaller towns in the Boquete area, there are homes built in an area that is primarily agricultural. This agricultural area uses a lot of water, so sometimes, water may not be available for the residents. For this reason, the residents have their own stored water.
Make sure you’re aware of the particular...
Make sure you’re aware of the particular...
When buying a house in Panama, you need to know that every area in Panama may have its own unique things to be aware of. For example, in some of the smaller towns in the Boquete area, there are homes built in an area that is primarily agricultural. This agricultural area uses a lot of water, so sometimes, water may not be available for the residents. For this reason, the residents have their own stored water.
Make sure you’re aware of the particular circumstances of anywhere you buy.
Make sure you’re aware of the particular circumstances of anywhere you buy.
Posted July 17, 2014
Vannessa Solano
In addition to people thinking through what type of property they want, what type of location, whether it’s city or country or beach, etc., I recommend that people come here to Panama to see the different areas we have here before they buy a house.
I also recommend that you only work with licensed real estate agents who are part of a company. (Even though it is not legal in Panama to sell real estate without a license, there are quite a few who don’t have a...
In addition to people thinking through what type of property they want, what type of location, whether it’s city or country or beach, etc., I recommend that people come here to Panama to see the different areas we have here before they buy a house.
I also recommend that you only work with licensed real estate agents who are part of a company. (Even though it is not legal in Panama to sell real estate without a license, there are quite a few who don’t have a license, so you should make sure by asking for their license number.)
Many of the established real estate companies in Panama will tend to charge around 5% of the selling price to the seller of the property, but in Panama, a seller can make any deal he or she wants with a real estate agent and it is easier in Panama to get away with this arrangement and also to overcharge for a property.
In Panama, as opposed to the US, there are no multiple listings. Generally, a seller will set their price according to appraisals that are done on the property. If you go to a bank in Panama to get a loan, they will ask you for the appraisal. There are many appraisal companies in Panama, and some real estate agencies (for example, ours), have a division that does appraisals.
There are many places online where you can check to see the asking price for properties similar to the one you’re interested in. Another reason you want to give your business to a more established real estate company is that these companies tend to be the ones that price the properties correctly.
If you go to a reputable real estate company, they should take care of all the legal requirements.
As opposed to how it works in the US, where, because of the MLS, real estate agents will show you any house that is in the MLS, in Panama, agents will only show you houses for which they already have an agreement with the seller to pay the broker’s commission. Only after this agreement is done will the agent take you to these properties, but he or she will not take you to other properties where they do not have an agreement with the seller (or perhaps, with another real estate company). Therefore, the larger the real estate company, the more agreements they will have with sellers, the more houses you will see. In contrast, If you go to an independent and ask them to show your properties, they many times will ask you to wait a week or so while the independent makes separate deals with each of the houses he plans to show you. If you go with us, for example, all we need to prepare to show you houses is a half hour or so while we download our database.
Posted July 26, 2014
Marla Diaz
When buying real estate in Panama, you need to know that, if done right, it’s a great investment. There are a lot of people who are talking about diversifying their money out of their home country, whether it’s Europe or the United States. The government of Panama has made it really easy for foreigners to buy real estate in Panama. Not only have they made it easy, but also they’ve provided incentives. For example, if you...
When buying real estate in Panama, you need to know that, if done right, it’s a great investment. There are a lot of people who are talking about diversifying their money out of their home country, whether it’s Europe or the United States. The government of Panama has made it really easy for foreigners to buy real estate in Panama. Not only have they made it easy, but also they’ve provided incentives. For example, if you buy real estate in Panama, you can get a property tax exemption for 5 or 10 years. Whether your property is eligible for the 5 or 10-year property tax exemption depends on the type of property, the price, etc. There used to be a 20-year property tax exemption, but it was reduced. However, under the right circumstances, you can pick up the remaining property tax exemption on a property that did have the 20-year exemption.
The price of real estate in Panama is a fraction of what it would be in the States or Canada, or Europe, for that matter, especially if you buy ocean front property. Posted August 17, 2014
Sieg Pedde - Helix Courier Limited
You have to do a lot of shopping when you’re planning to buy a house or other real estate in Panama. We in North America are used to having the MLS (Multiple Listing Service) and that’s almost nonexistent in Panama.
Increasingly, Canadians and Americans are setting up real estate shops in Panama, including companies like Re/Max, although it is not a hundred percent success. There is still a long way to go.
If you...
You have to do a lot of shopping when you’re planning to buy a house or other real estate in Panama. We in North America are used to having the MLS (Multiple Listing Service) and that’s almost nonexistent in Panama.
Increasingly, Canadians and Americans are setting up real estate shops in Panama, including companies like Re/Max, although it is not a hundred percent success. There is still a long way to go.
If you want to own a property in Panama, you have to go around and check things out. If you are shopping in Boquete, do your own comparisons between similar homes offered by different agents. Aside from that, it’s also very useful to have a local as a friend who can help you with all of these things. I’m not just speaking of your friend helping with the language but your local friend will understand better what is ideal and what is not. Having a local friend to help you out is necessary in the sense that someone might be trying to take advantage of the situation because you’re coming from somewhere else and you might not know all of the real local prices and other important factors.
There’s also this thing called "Rights of Possession" that you should be cautious about. If you purchase anything that is under Rights of Possession then you can live there as long as your claim on that particular piece of property is at the top of the list. However, there are some instances where you can get into trouble. For example, someone might come along and tell you that he owns your property and he’s been there for 50-100 years even though he doesn’t have a title to the land or some sort of official permission. This means that you’re squatting on that property and you actually have to go to court.
Panama is very advanced in this respect. It is highly recommended to have a personal lawyer. If you are going to purchase a home in North America with a lawyer, then the same should also be done in Panama.
Just so you know, Panama is not a backward place where everything is difficult. There are local offices in Panama where everything is recorded. Increasingly, everything is online, so your lawyer can check things out by simply going to appropriate websites. You can also go to the local registry office and do a physical check.
Posted September 1, 2014
Linda Jensen
What you need to know when coming to Panama to buy a house is that you shouldn’t be too trusting. You should also understand the language and the laws very well because people can get in hot water here.
Another thing is that you should not try to build by long distance. If you’re not going to be here to supervise building your home in Boquete or anywhere in Panama, then you are really making a big mistake because even the most well-renowned...
What you need to know when coming to Panama to buy a house is that you shouldn’t be too trusting. You should also understand the language and the laws very well because people can get in hot water here.
Another thing is that you should not try to build by long distance. If you’re not going to be here to supervise building your home in Boquete or anywhere in Panama, then you are really making a big mistake because even the most well-renowned architects in Panama can make huge errors, especially if there’s no one here to oversee them.
Posted September 7, 2014
Wee-Yiong Fung - Prestige Panama Realty
If you are planning to buy a house in Panama, the number one thing to consider is to know what is your budget. For example, if your budget is US $150,000, then you should go to a realtor or start searching on the internet for that price of home. That will give you an idea of how big a home you can get for your budget, the quality of the home, and in what location.
In general, I would not recommend buying a house from a bank that the bank has, as a result of a...
In general, I would not recommend buying a house from a bank that the bank has, as a result of a...
If you are planning to buy a house in Panama, the number one thing to consider is to know what is your budget. For example, if your budget is US $150,000, then you should go to a realtor or start searching on the internet for that price of home. That will give you an idea of how big a home you can get for your budget, the quality of the home, and in what location.
In general, I would not recommend buying a house from a bank that the bank has, as a result of a foreclosure. The reason is that the foreclosure process can take two years or so, and during that time, the home may have essentially been abandoned, not have been kept up and may have had items stolen. As a result, most homes that are purchased out of foreclosure are “fixer uppers” and / or are offered for rent, as opposed to being a home that a private individual would want to buy and live in.
In general, I would not recommend buying a house from a bank that the bank has, as a result of a foreclosure. The reason is that the foreclosure process can take two years or so, and during that time, the home may have essentially been abandoned, not have been kept up and may have had items stolen. As a result, most homes that are purchased out of foreclosure are “fixer uppers” and / or are offered for rent, as opposed to being a home that a private individual would want to buy and live in.
Posted October 17, 2014
Terry Bradford
We went around starting in 2009 and talked to the builders and the architects in Panama. Here's what we found after a good amount of investigation:
- Some of the developers did not pay their contractors or others.
- Some developers are good to take money up front but they are not good at standing behind their development.
- There are certain developers that cut corners in their building.
- There were also some problems in the buying process of homes...
We went around starting in 2009 and talked to the builders and the architects in Panama. Here's what we found after a good amount of investigation:
- Some of the developers did not pay their contractors or others.
- Some developers are good to take money up front but they are not good at standing behind their development.
- There are certain developers that cut corners in their building.
- There were also some problems in the buying process of homes here in Panama where people pay their money up front and the developer will drag their feet and will not get things done properly.
This was not true of all developers, but it was true of some of them. If you want to buy a home in a new housing development in Panama, you should talk to a trusted realtor. There are only three developers that we trust here in Panama, each of which has a very good reputation. They stand behind their workmanship.
So the bottom line is that you have to find out the developers who can be trusted.
Posted October 29, 2014
Jose Broce - Broce-Pinilla & Asociados
I’ll tell you, from my perspective as an investor, as a businessman and as a realtor, what you should know when buying a house or other real estate in Panama.
If I want to buy a property in Panama, I would look for places that are on the way to being developed, as opposed to being completely developed, and I would look for properties that have actual infrastructure or future infrastructure in the area. The reason for this is, I know that...
I’ll tell you, from my perspective as an investor, as a businessman and as a realtor, what you should know when buying a house or other real estate in Panama.
If I want to buy a property in Panama, I would look for places that are on the way to being developed, as opposed to being completely developed, and I would look for properties that have actual infrastructure or future infrastructure in the area. The reason for this is, I know that if I invest in a place surrounded by those conditions, the value of my real estate will increase.
You need to be aware of the market prices as opposed to the appraisal prices. This is because Panama moves so fast, the appraisal companies might think that a property is worth an amount based on the actual cost of the property, without conducting a study or perhaps projecting the value of the property a few years in the future.
You need to know the developer. If you’re going to buy commercial real estate or a house or condominium where you want to live, you want to know who built it and according to that, you will know if that structure is going to last longer than others. I’m not saying that they build poorly here in Panama; I’m saying that some developers are very meticulous on the projects that they build. For instance, the developer Empresas Bern is my favorite. They’re a little bit more expensive than the average, but what they build, they have zero problems, zero cracks, zero anything, and they’ll deliver what they promised. That’s why I like to invest in what they’re building.
If you’re buying second hand, you have to know the legal status of the property, so that you’ll know if the previous owner has paid all the taxes and that there are no legal issues related to the real estate. You don’t need a lawyer for this, but it’s easier for lawyers to find out that information than it would be for a non-lawyer. The reason is that, as lawyers, we have passwords to reach information that not everybody has access to. And we have people who are “Registro Publico Catastro” (property registry), and we know what to look for. A person who comes to Panama might not know where to look, how to look and what to look for.
I would suggest that if you’re going to make an investment, you investigate through a lawyer and an accountant, both. The accountant certifies that the property has no pending taxes and the lawyers will certify that the property has no legal issues. When we are hired to investigate a real estate transaction or pending purchase, we have an accounting department in our law firm that helps us to give a full certification of the legal status and the tax status of the properties.
Posted November 2, 2014