For foreign investors in real estate in Panama, adjusting to the legal requirements is easy. In the case of retirees who rent, Panama’s legislation provides some tax exemptions when taking cars and other household items into the country. Plus there are discounts on the cost of processing the move and getting settled in Panama. There are many other advantages retired persons can enjoy when owning real estate in Panama.
When registering the land, all transactions involved in the sale and purchase of real estate should be registered with the Public Registry General Office of the Republic of Panama. All the necessary steps will be verified by the notary public officer, which serves as a guarantee for all investors.
To practice real estate in Panama, it is necessary to have a professional license issued by the Real Estate Technical Board of the Republic of Panama. If you have been residing in Panama for over five years, you are eligible to request this license as long as the examinations required are passed, and no other problems come up.
With condominiums and/or communities that fall under the regulation of the Horizontal Property system, they are regulated by Law Thirteen that dates back to April 28th, 1993, and the Executive Decree number Thirty-Nine that dates back to November 7th, 2001.
According to the Executive Order number six that dates back to July 8th, 1999, the Real Estate Technical Board of the Republic of Panama must listen to all arguments regarding contracting parties in a sale of real estate in Panama, In addition, the Panamanian Association of Real Estate Agents and Promoters uses a strict code of ethics for members to follow. The ethics committee can act as a conflict mediator, which is an additional guarantee to those who work with members belonging to this group.
Real estate agents in Panama are actually trained to perform a number of tasks such as property appraisals, periodic reports on concrete marketing actions, counseling for legal and financial situations, or general counseling services. They can also negotiate and close commercial transactions, prepare and process all corresponding legal documents, and take care of most of the process after the closing of the transaction, such as payments, collections, and registration.
Usually in the Panamanian market, it is customary to pay a commission of about five percent to the real estate agent for the sale of the property, although the amount can be negotiated by both parties to a possible larger or smaller amount. The commission will be discounted from the payment received by the seller of the property.
If you would like to learn more about real estate in Panama, you will find some more articles on the subject on this site.