Why use an Escrow in Panama?
Any transaction presents the same challenge when it comes to deposits and closing payments. Getting a Bank account in Panama is a lengthy process, direct wire transfers or foreign bank checks are inconvenient for the parties.
Third party administration of the financial aspects of a transaction provides a more transparent and secure transaction, which minimizes risk and potential miscommunications as the transaction evolves towards closing. As an Escrow Company we are responsible for the management and safekeeping of the funds and documents associated with a transaction, and their disbursement in strict accordance with the escrow agreement signed by all parties to the transaction.
Many properties in Panama are in the posesory right (Derecho Posesorio) stage require a payment guarantee to the buyer - which should be given once the title process has been completed. Foreigners cannot do the titling process (in the past this could be done) - this is one very common example of why to use an escrow account.
(Land in Pedasi – Azuero Peninsula, Panama)
The responsibilities of the Escrow Company include:
- Timely receipt and disbursement of funds to the seller, brokers and any other party related to the real estate transaction
- Enforcement of all contract terms with regard to payment procedures.
- Issuing all cash call letters to remind payments
- Notification to clients and project regarding funds status at each stage
- Preparation of closing statements
- Custody of documents
Administrative Services
- Managing communications regarding funds with the Buyer
- Tracking all documentation, ensuring that buyers and sellers are in compliance with all contract terms
- Maintaining records and files, and distributing them to the appropriate parties at appropriate times
- Ensuring that required documentation is received and reviewed by the appropriate parties
Advisory Services
- Advising Clients on suggested procedures and standards for the closing process
- Establishing protocols to deal with contingencies or variations from regular transactions
- Assistance in the development of the real estate closing process
- Determining all required documentation
Our escrow services are an attractive financial risk mitigation tool. We are a leading provider of escrow services. We customize to meet your needs, making arrangements quickly, accurately, and intelligently to ensure your transaction closes properly.
(Rainbow Land Crab – Panama)
Contact panamamortgage@gmail.com or Mario Quezada (507) 6780-5050 for more information on how we can advise you regarding escrow services or mortages.