Mistakes that Beginners Make When Buying Panama Property

Are you thinking of buying a property in Panama but are not sure where to start? Panama is popular with expats and retirees not only because it’s beautiful but also because the local real estate market is relatively affordable. What’s more, foreigners have almost the same rights as locals when it comes to owning properties, with very few restrictions. 

 

If this is your first time buying a property in Panama, make sure to avoid the following mistakes:

 

Mistake #1: Failing to hire a lawyer and realtor.  

 

This rule is universal no matter where you decide to buy a property: Always hire a realtor and a lawyer to guide you through the process. 

 

These professionals can help you avoid cons and scams, which, unfortunately, are common in Panama’s real estate market. Most of the paperwork you need to complete will be in Spanish, so hiring a trusted Panamanian realtor and attorney will help you navigate the foreign language. They can also help you review the sales contract, set up your escrow account, and assist with title searches. 

 

Mistake #2: Failing to verify the title.

 

Many sellers will claim that their property is titled, but you can’t just take their word for it. Be sure to verify this yourself. Ask the seller for the following documents:

·        The title or the public deed (escritura)

·    The Ownership and Encumbrances Certificate (Certificado de Registración) issued by the Public Registry (Registro Público)

 

If they fail to provide these documents, ask the seller to give you the assigned property number. Better yet, work with a realtor who can take care of all this for you. 

 

Mistake #3: Buying too quickly. 

 

Many foreigners agree to a sale too quickly because they’re excited to move to Panama. But making this mistake may put you at risk of buying the wrong house or cause you to miss out on other properties that offer better value for your money. 

 

In the end, it’s best to work with a realtor who can show you many different options when buying a property in Panama. This will give you a better feel of the market and allow you to make the best choice!