The main risk which can be considered in Panama is that Catastro and Registro Publico are not in sync. Registro Publico is great and digitalized (you can access their website and find so much information.

 

 

https://www.registro-publico.gob.pa/

 

 

Then you have Catastro which is not digitalized and is not synchronized with the Registro Publico - and this is when problems arise. The most common problem is that the size of your lot is incorrectly marked because the finca has passed through so many owners or there is a previous denotation of the lot in Catastro which nobody was aware of until someone starts to build next to you and claims that part is theirs. Or there is a problem in inheritance that someone claims that the lot was in their family and the person who sold it to you was not authorized.

Then the problems begin and even if you are in the right you still have to hire lawyers (which are included in that cost - you would never have to pay additionally) to defend you.

 

What about apartments in Panama City?

 

 

(Punta Paitilla ~ Platinum and Mirage Towers)

 

 

Apartments in Panama City have lower risk than land, but they still present risk.

 

 

A resent example would be the Pacific Point Development in Punta Pacifica – where the developers bought the land and then developed the whole complex, then a year later comes Balbina Herrera (the Minister of Housing) and states that the developers did not comply with park regulations and now they must use part of the gated community as a public park.

 

 

This case is still in court, but if this does manage to occur and one of the inhabitants of this complex had title insurance then they would receive compensation because their property value has been lowered.

 

Corporation/Foundation to own real estate

This is not for everyone but depends on future plans. If you think that for some reason you may want to resale the property, then the benefit will be that you would not have to transfer title and pay transfer taxes, but the property will stay under the corporation or foundation’s name. What you sell is the ownership of the corporation/foundation instead. In regards to you Title Insurance it will also remain with the property as the insured corporation/foundation will still own the property after you’ve sold. Other benefits include: no need for a last will or testament and a succession trial for property to pass on property to your heirs but corporate ownership transfer instead; your ownership of the entity and thus the property is completely anonymous and not subject to any information exchange treaty for tax purposes with any other country. Also foundations assets cannot be impounded or seized.

 

 

(Nikki Beach Proyect – Playa Blanca, Panama)

 

 

Complete cost of corporations are around USD$850.00, and Foundations all inclusive packages average USD$900.00. These are not sold by us, but by our network law firms. These costs will almost always be less than paying title transfer taxes if you or your heirs decide to sell the property in the future. Our network firms also have a Visa and Immigration Services Specialist.

Title Report (Search and Examination + Legal Opinion)

 

The procedure is simple we would only need to know the Finca # and the insured value to start with. It is priced at USD$750.00 plus expenses. An underwriting requirement is for the proposed insured to hire one of our networked law firms to write this Title Report. That is a Title Search with all the attached listed documents, organized into a legal opinion. The cost of this legal work is payable to the chosen network law firm.

 

 

(Land in Cerro Punta looking at the Volcan Baru – Chiriqui Province – Panama)

 

You just need to provide us with any information you have about the property you are interested in, pay the Title Report fee, and you will receive a Title Insurance Commitment from us with our invoice for the premium. The Title Insurance Commitment will disclose any problems found on this Title Report, as requirements to be fixed in order to provide you with a title that is clear of any on-record defects. After requirements are met and premium is paid, we issue your Title Insurance Policy to cover you from any off-record defects that may arise in the future.

The following is the information our lawyer will obtain in your title search, please do not use a lawyer that is not approved by us, because the insurance company will not accept the search as valid.

(Ocean Business Plaza or Banesco Tower ~ Banking District)

Property Registration Information – which includes:

1. Location and Address

2. Area in square meter

3. Type description and use of the property

4. Information regarding any burden to the title of the property.

5. Lease agreements or other agreements granting use of the property.

6. Registered liens, easements, encumbrances or limitations.

7. Chain of Title.

 

Title Search also requires:

 

• Certificate of absence of Liens
• Certificate issued by the Catastro Office regarding total area and registered value of lead and improvements.
• Survey with Delineation of the Meets and Bounds.
• Good Standing Tax Certificate for the Property.
• Good Standing or EVIDENCE OF Payment of water, sewage and other Contributions.
• Condominium Property Regime, if applicable.
• Time Share Regime, if applicable.
• Ground Lease Structure, if applicable.
• Mortgage Indebtedness and Mortgage Cancellations.
• Covenants, Conditions and Registrations on the Property.
• Description of Physical Inspection (including for review of easements for possession by third parties).
• Impending Litigation: report of Legal Status of any lawsuits affecting the property.
• Appraisal of the Property.

 

Part of obtaining title insurance is conducting a title search. A title search must be done by a lawyer. We work with a network of lawyers that we can recommend to do this search for you. For more information please contact us at forlacol@gmail.com or by phone (507) 6676 5151 (Ursula)