Step-by-Step Guide to Buying Real Estate in Panama, how to buy a house in panama, buying property in panama
- Select Panama Real Estate staff writer
- 3 days ago
- 2 min read
The 2025 Step-by-Step Guide to Buying Real Estate in Panama (For Foreigners)
So, you’ve fallen in love with Panama and now need to learn about buying property in Panama. Maybe it was the skyline of Panama City that looked like Miami (but at half the price), or the eternal spring climate of Boquete. Now comes the big question: How do I actually buy a home here without losing my shirt?
Buying property in Panama is remarkably straightforward for foreigners, but the process is different enough from the US or Canada to cause headaches if you go in blind. As an expat who has navigated this maze, let me walk you through the step-by-step guide to buying real estate in Panama, free of legal jargon and full of practical reality.
1. The Golden Rule: Title vs. ROP
Before you even look at a listing, you must understand the difference.
Titled Property (Propiedad Titulada): This is the gold standard. It is registered in the Public Registry, and you own the land and improvements fee simple, just like back home.
Right of Possession (Derecho Posesorio or ROP): You are buying the "rights to use" government land. While common in beach areas and islands (like Bocas del Toro), it carries higher risk.
Expert Tip: For your first purchase, stick to titled property. It’s the safest route for buying property in Panama.
2. The "Promise" (Promesa de Compraventa)
Once you find your dream home and negotiate the price, you don't jump straight to closing. You sign a Promesa de Compraventa (Promise to Purchase Agreement).
This legally binding contract outlines the price, closing date, and contingencies.
The Deposit: You will typically pay a down payment (usually 10%) upon signing.
Crucial Step: Never pay the deposit directly to the seller. Always use a secure escrow service or a reputable lawyer’s escrow account.
3. Due Diligence (The "Check-Up")
This is where your lawyer earns their fee. Do not skip this. Your legal team will check the Public Registry to ensure the title is clean, free of liens (mortgages), and that the seller is the actual owner. They will also verify that all property taxes and water bills are up to date.
4. The Transfer Deed (Escritura Pública)
Once due diligence is clear and funds are ready, you and the seller will sign the Final Sale Deed before a Notary Public. This is the moment ownership legally changes hands.
5. Registration (The Finish Line)
You aren't done yet! The signed deed must be physically taken to the Public Registry to be recorded. In Panama, you don't own it until the Registry says you own it. Once recorded, you get your shiny new Title Deed.
Ready to start looking? Don't just browse Zillow; Panama’s market is fragmented. You need a boots-on-the-ground expert.
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