Why Foreigners Come to Panama

Buying Land in Panama: The Importance of the Escritura, the Plano de Catastro, and the National Registry

by Joquin Ives Brant

This article is intended to help the foreign buyer handle their first purchase of land or other real estate in Panama safely and efficiently.

Anyone coming from another country to buy real estate in Panama is likely to encounter confusion over the different procedures and customs. It's no surprise; many locals are surprised or dismayed by some of the requirements to sell their land to you!

Once you find a property you are seriously interested in, you should ask the owner for the Plano de Catastro and the Escritura. Especially in the countryside, many property owners in Panama will be reluctant to show you these documents until they have established a sense of who you are. These documents are considered to be valuable and personal, not to be shown casually to just any passerby. Do not be offended if the owner treats his property documents as if they were gold; it could well mean that he treats his land with great care and that is a positive thing for you as a buyer to note.

You should note the owner(s) name on the Escritura, and the finca number and the information that goes with it, such as the numbers following the words Rollo, Tomo, Codigo de Ubicacion, Asiento, and anything else. Copy all these down carefully. Be particularly careful to note who the owners are. If there are several of them, you will need ALL to be represented in the contract. You will see the ID, or cedula number, of each - note all those precisely, as well. Note the size of the property. The escritura, or deed, should match the area shown on the Plano de Catastro exactly. Study the Plano to ascertain, if you can, that it matches the size and shape of the land you are physically seeing. If you cannot ascertain that they match up, you'll need a topographer/surveyor to verify you aren't accidentally buying some other piece of land.

Before paying to have someone else check the basic information, go online at www.registro-publico.gob.pa http://www.registro-publico.gob.pa/ and choose Consultas to look up the property by finca number. Often, several properties will have the same finca number and you will need the property size and location code (codigo de ubicacion) to match it to the one you are investigating. You may need to click on, and open up the window for each property showing that finca number until you hit the right one. Check the property size and the owner's name again. They should match.

Your lawyer will need to check and verify, but the more you understand what the lawyer needs to verify, the more of a safety net you put around your purchase. Often the owner's name has not been entered in the computerized system; your lawyer will be able to confirm that.

Why Foreigners Come to Panama

by Ives Brant

Ten percent of England's citizens live outside its borders, but Americans have been far more hesitant to venture abroad to live, with only about two percent living as expatriates. That's changing, and a lot of them are considering Panama. Here's why:

1. Baby Boomers. You've heard the statistic: 70 million Americans retiring in the next 15 years and seeking their place in the sun. If 1/10 of just one percent of them head for Panama, that's 70,000 folks with a Social Security and pension income.

2. Returning Military. Tens of thousands of US servicemen know Panama already, because they were stationed there. If they retire abroad, it's a likely destination for them. Already they are buying lots and building homes in Coronado, or snapping up condos in Panama City.

3. Cruise Ship Passengers Every year hundreds of thousands are treated to the sight on Panama City's skyline upon traversing the Canal. They tend to be near retirement age and their cruise leaves them with excellent impressions.

4. Panama is Inviting Them. With funding of documentaries and commercials on US and Canadian TV, the country is serious about promoting itself as a tourist and retiree destination.

5. The Internet. With a Vonage phone (so talking with friends and family back home is just a local call either way) and e-mail, it isn't so lonely or scary abroad. Chat groups like Yahoo's viviendo_en_panama help too.

6. Terrorism. The tragic events of 2001 triggered an outflow of Americans. Suddenly, the citadel of America did not feel as safe, and countries with warm climates, unlikely targets for terrorists, became attractive to many.

7. Panama's Housing. Suddenly, Panama City and the surrounding beach areas have extremely attractive housing options for any budget.
8. The Skyline. With hundred-story residential towers going up, Panama City conveys such dynamism that its attraction is felt immediately.

9. Retiree Benefits. For "pensionados" there is a long list of breaks on transportation, food, lodging, entertainment, and health care.
10. Stability and Infrastructure. Panama is now a solid country, and the United States will not let it be otherwise. Anything that could threaten the Canal guarantees immediate US intervention.

11. Red Frog and Vista Mar. Ambitious developments pave the way for more upscale developments and higher demand for land, just by showing how it's done.

12. High Costs at Home. For retirees, who need more personal services, including quality health care, but don't buy many imported goods, Costa Rica has been a fine haven. In Panama, they get all that plus extensive retiree benefits and it's a great place to buy almost anything.

13. Familes. Suddenly, suburbia has arrived around Panama City, with Balboa and Costa de l'Este, not to mention fine international schools. Employees of the US embassy, of multinationals with subsidiaries in Panama, and those who have found a way to make a living internationally are flocking into these areas.