The rapid appraisal of the real estate properties in Panama, the low cost of life and the excellence in tax incentives, have placed the business of real estate properties in Panama as one of the biggest boom. The negotiations for acquiring real estate properties in Panama are catalogued as secure, since, currently, the Constitution of the Republic of Panama, includes laws for the protection of those who purchase real estate in Panama.

The transactions that take place during the purchase of real estate properties in Panama take a while, approximately 6 months; however this lapse of time, no only depends on the companies promoting real estate properties in Panama , but also of the agreements with lawyers and the approval from the Public Registry.

Once it has been decided which one of the real estate properties in Panama you wish to invest in, you should negotiate the purchase terms with a Real Estate Broker.

A lawyer should verify the availability of the property, register the title of the property and prepare the Buy-Sell Contract in order to finally sign the formal Buy-Sell Contract and for the corresponding payment to be made.  Following that you only have to wait for the Buy-Sell Contract to be approved by the Public Registry and for the property title to be transferred to the new owner. It is well advised that you follow all these procedures since you're protecting yourself by doing so.

For the signing of the Buy-Sell Contract, brokers receive 10% to 50% as an initial down payment.  In some cases, this is proof of reliability in the business of real estate properties in Panama , goes on to becoming a minimum amount, depending on the relationship that the purchasers of real estate properties in Panama have, with the owner. 

Regarding the closing costs of the transactions that are performed in order to purchase real estate properties in Panama , these vary according to the processes that are done in order to obtain real estate properties in Panama .  It is also known that in the business of real estate properties in Panama , each party is responsible for paying the costs that they generated.

The transfer of the property titles for real estate properties in Panama , are made effective in a period of 1 to 3 weeks.  The Panamanian State charges 2% of the value indicated in the deed of sale of the real estate properties in Panama and adding to these costs, the Notary Public requests a payment that can amount to between $200.00 to $300.00 dollars, for the registration of the Buy-Sell Contracts for real estate properties in Panama .

Generally it's the seller who pays the transfer tax of the property but the possibility of a Panamanian real estate broker adding this cost to the buyer end of a transaction may arise if it furthers the closing process.

It should be noted that the leasing of real estate properties in Panama with the option to buy is also frequent in Panama.  In these cases, the difference is that the Rental Contract of the real estate properties in Panama is registered in the Ministry of Housing (MIVI).