Three pillars, one smooth closing. This page explains every contract you’ll sign, what the notary actually does, and how escrow keeps your money safe—so you can buy property in Panama with total confidence.
| Contract | Stage | Purpose | Typical Deposit |
|---|---|---|---|
| Promesa de Compraventa (Promise‑to‑Buy) | After price agreement | Reserves the property and locks in terms | 10 % of purchase price |
| Option to Purchase | Pre‑construction / land banking | Secures right (not obligation) to buy at a fixed price | 1 – 3 % option fee |
| Escritura Pública de Compraventa (Sale Deed) | Closing day | Transfers legal title; recorded at Public Registry | Balance of funds |
| Lease with Option to Buy | Rent‑to‑own scenarios | Tenant builds equity while renting | 1–2 months rent + option fee |
| Power of Attorney (POA) | Remote buyers | Authorises agent to sign on your behalf | — |
| Escrow Agreement | Throughout | Governs release of funds | — |
Tip: Insist on a due‑diligence escape clause—rarely offered by default.
| Clause | Why It Matters |
|---|---|
| Option Fee & Applicability | Is the fee creditable toward purchase price? Refundable? |
| Exercise Window | Specific dates vs. project milestone (e.g., occupancy permit) |
| Price Escalation | Fixed vs. indexed to construction costs or CPI |
| Assignment | Can you sell the option to another buyer? |
| Default Remedies | Loss of option fee vs. liquidated damages |
| Type | Scope | Validity |
|---|---|---|
| General | Broad powers incl. banking | Until revoked; higher risk |
| Special (Specific) | Single transaction—e.g., sign deed | Expires upon completion |
All foreign‑issued POAs must be apostilled or legalised and then registered in Panama before use.
| Task | What the Notary Verifies |
|---|---|
| Identity Check | Valid passport / cedula and signatures of parties or attorneys‑in‑fact |
| Legal Capacity | Corporate board resolutions or POA validity in Registry |
| Tax Clearance | Transfer tax & capital‑gains advance paid (DGI receipts) |
| Property Data | Folio real number, boundaries, and encumbrances match Registry |
Cost: US $250 – $600 depending on province and sale price. Appointments fill fast—AskPanama books your slot two weeks ahead.
| Item | Standard Practice in Panama |
|---|---|
| Escrow Agent | Bank trust division (e.g., Banistmo Trust) or licensed fiduciary company |
| Deposit | 10 % upon signing Promesa; balance on deed day |
| KYC Requirements | Passport, proof of address, source‑of‑funds letter |
| Release Conditions | Notary‑signed deed and Public Registry filing receipt |
| Fees | US $350 – $600, typically paid by buyer |
AskPanama holds a client‑trust account at Multibank for faster domestic transfers and same‑day USD wires.
| Clause / Issue | Risk | AskPanama Fix |
|---|---|---|
| “Deposit non‑refundable under any circumstance” | No exit if title defects | Add due‑diligence contingency |
| Seller may extend closing “at discretion” | Unlimited delays | Cap extensions & add penalty |
| Arbitration outside Panama | Higher cost & enforcement issues | Keep venue in Panama City |
| Funds wired directly to seller | Money at risk before deed recorded | Mandatory escrow with release triggers |
| Service | Scope | Fee |
|---|---|---|
| Contract Draft or Review | Spanish & English versions + risk notes | $450 |
| Notary Coordination | Appointment, document prep, attendance | $300 |
| Escrow Setup & Management | Agent selection, KYC, wiring instructions | $350 |
| POA Draft & Apostille Guidance | Template, instructions, registry filing | $200 |
Turnaround: 24 hours for standard reviews, 48 hours for bilingual drafts.
Questions? WhatsApp +507‑6933‑3333 or chat live.
Contracts iron‑clad. Notary booked. Funds secured. That’s AskPanama.
