Procedures for Acquiring Title

The Titling Process is the official administrative procedure to acquire and register ownership Title on a Rights of Possession Property.

Island Properties cannot be Titled according to the Constitution of the Republic of Panama (only main land can be Titled). If you find Titled Properties on an Island, it is because this is an old Title, which where originally registered before the restriction in the Constitution was approved.

On beachfront Properties, a set back of 22 meters is required, due to the high tide.

1. Power of Attorney (we will draft it).

2. Application or Titling request (we will draft it).

3. Prove how Possession was acquired, for example through Purchase Contract of Rights of Possession.

4. Certification from Government Authority certifying Rights of Possession (Catastro, Reforma Agraria, Mayor/Alcalde, Chief of Police/Corregidor, and/or witness).

5. Original Survey signed by official engineer.

6. Certification of Municipal Council that certifies that have no opposition with the Titling.

1. All the necessary documents and requirements should put together and presented to apply for the Titling Process.

2. An official File will be created and all documents will be reviewed.

3. File will be sent to the respective local office to coordinate official Inspection of the Property.

4. Official Inspection on the Property will be done by the official government engineer, who will confirm the boundaries, neighbors consent, no opposition by third persons, area of property, etc.

5. Official government engineer will certify by official report possibilities of Titling.

6. Notices of Titling will be posted at the Government Institute official board, and will be published in a National newspaper.

7. Official Survey will be approved.

8. Official Appraisal will be certified through two Government Institutes (Catastro, of the Ministry of Economic and Finance and Treasurer Institute “Contraloria”), where value of the Property will be established.

9. Payment should be made to the government for the Titling of the Property (payment is based on a per square meter price that is set by the government).

10. Official Resolution that grants Title will be issued.

11. Official Resolution will be registered at the Public Registry.

Administrative Concession is a Contract between you or your Entity (as possessor of the Rights of Possession Land) with the Government of the Republic of Panama (as owner of the Rights of Possession Land) where the Government grants you or your Entity protection on said Land.

If you wish to protect your investment on Rights of Possession land, you can apply for an Administrative Concession, which can be granted for a maximum of twenty (20) years, which is the maximum time according to the Constitution of Panama.

This Contract can be revoked.

Requirements:

1. Power or Attorney (we will draft it)

2. Certification from the public registry (we will get it)

3. Minutes of the Board of Directors of the Corporation authorizing development of the Project and authorizing the President and Legal Representative to apply for the Administrative Concession (we will draft it)

4. One original and five (5) copies of Survey where the complete area and measurements are described (Client should provide the original, we’ll make copies)

5. Drawing/survey of complete Project with exact area, measurements, size, etc. (Client should provide this)

6. Certification of proof of Rights of Possession (Client should provide this, and if you don’t have it, then we can assist you with getting it)

7. Resolution from the Municipal Office (Concejo Municipal) that certifies that the Municipality is not opposing the Administrative Concession (We can assist you to get this).

8. Environmental Impact Study (Client should provide this, and if you do not have it, then we can assist you to get it). This is required, according to the Government, only if the Property area is more than one hectare (1Hec.).

9. Feasibility Study (Client should provide this, and if you do not have it, then we can assist you to get it). This is required, according to the Government, only if the Property area is more than one hectare (1Hec.).

10. Pictures of the Area and Property (Client should provide this, and if you do not have it, then we can assist you to get it).

1. Once Right of Possession is acquired, and all documents are completed for Administrative Concession, application request will be presented to the National Direction of Catastro and Patrimonial Properties (Direccion Nacional de Catastro y Bienes Patrimoniales), of the Ministry of Economic and Finance (Ministerio de Economia y Finanzas).

2. An official inspection, done by the inspector of Catastro, will be conducted on the Property (this is done by sending someone to the specific Catastro Department of the area where the Property is located, to get and accompany the inspector to the Property). The inspector will confirm the area for the Concession, the boundaries, neighbors and possibility of opposition by third persons.

3. The inspector will draft a report of the inspection for the file of Concession request.

4. A Certification of Notice of the Concession request must be published (in order to confirm a possibility of opposition) in
a. The National Official Government News Paper (Gaceta Oficial)
b. A National Private Newspaper
c. At the Catastro Office Department board

5. A mandatory waiting period in case of any third person opposition.

6. An Official Survey will be conducted.

7. Communications will be sent to different Government Authorities (Ministry of Housing, Environmental National Association, etc.) depending on the type of Project, in order to confirm consent or disagreement for granting the Concession.

8. An Official appraisal will be done by:
a. Catastro of the Ministry of Economic and Finance
b. General Treasury of the Republic (Contraloria General de la Republica)
Depending on the calculated value of both appraisals, the value for the Concession Land will be determined.

9. The draft Contract will be done by Catastro Department of the Ministry of Economic and Finance.

10. The Administrative Concession Contract will be reviewed and signed by the Ministry of Economic and Finance.

11. The Administrative Concession Contract will be reviewed and signed by the General Treasury Director of the Republic (Contralor General de la Republica).

12. The Administrative Concession Contract will be reviewed and signed by the President of the Republic of Panama, the head of the Executive Organ (Organo Ejecutivo).

13. The Administrative Concession Contract will be published in the National Official Government News Paper (Gaceta Oficial).

Fees & Expenses:
Legal Fees: $2,500

If you are buying a Property in Panama, the following Procedure should apply:

FIRST: Buyer, Broker (if any) and Seller complete the negotiations and all the terms and conditions of the transaction.

SECOND: Client contacts International Relocation Firm (International Relocation Firm – Law Firm) to retain their Legal Services.

THIRD: Client / Broker send to International Relocation Firm the complete information on the transaction (property description, area, location, information of the Seller, purchase price, payment form, contingencies, etc.).

FOURTH: PT&E (PANAMA TITLE & ESCROW Inc.) drafts an estimate break down of the fees (for their Services), expenses (government expenses, taxes, notary stamps, etc.) and payments for the complete specific transaction.

FIFTH: Client sends wire transfer of funds to the escrow Account.

SIXTH: International Relocation Firm starts Legal research at Government Institution where the Property is registered to confirm real ownership registered, mortgage and if taxes are owed to the Government.

SEVENTH: International Relocation Firm draft Contracts, payment receipts, and necessary documents for the transfer of rights, for the entire transaction.

EIGHTH: With the approval of the Client and the consent of all parties involved (Buyer, Broker and Seller), International Relocation Firm coordinates “The Closing” (payment to the Seller and Signature on the Contract and complete documents of the transaction).

NINETH: International Relocation Firm starts the registration of transfer of rights procedure at the appropriate Government Institution in order to register the rights on the Property in the name of the Client (or Client’s Corporation/Foundation).

TENTH: International Relocation Firm sends to Client package of original documents (purchase Contract and documents of registration of rights on the Property) with a detailed invoice of the Services provided.

If your Property Transaction is a Rights of Possession, then the following Procedure will apply for the Registration of Transfer of Rights:

1. All papers for Registration should be presented (Purchase Contract, Power of Attorney, Survey, Transfer Authorization Request, etc.).

2. The Reforma Agraria will issue the Providence (Provisional Resolution) that starts the procedure of Registration.

3. The Providence should be notified to both parties (Seller and Buyer).

4. The Reforma Agraria will do an Official Inspection on the Property (this has to be coordinated with the Engineer in charge and have to take him to inspect the Property).

5. The Reforma Agraria will issue the “Ocular Inspection Act”, were the Inspector certifies all the details of the Property.

6. The Ocular Inspection Act has to be notified to both parties (Seller and Buyer).

7. The Reforma Agraria will issue the Permanent Resolution that certifies and authorizes the transfer of Rights of Possession.

8. The Permanent Resolution has to be notified to both parties (Seller and Buyer).

If your Property Transaction is a Titled, then the following Procedure will apply for the Registration of Transfer of Title:

1. The Seller and Buyer Signs the Minutes of the Purchase Contract.

2. The 2% Transfer Tax will be paid to the Government (Ministry of Economic and Finance).

3. The Seller should provide (if not we would apply for) a Certification from the Ministry of Economic and Finance, for the Property Tax (Paz y Salvo de Inmueble). Some times the Property information of the Seller is not updated at the Ministry of Economic and Finance (Catastro Department), in this case, this would take around 2 to 3 weeks to update the information.

4. The Seller should provide (if not we would apply for) a Certification from the water company (I.D.A.A.N.).

5. All documents above mentioned will be presented to the Notary to draft the Public Deed of the Purchase Contract.

6. The Public Deed of the Purchase Contract will be signed by Seller and Buyer.

7. The Public Deed of the Purchase Contract will be presented at the Public Registry for the Transfer of Title registration.

8. At the Public Registry, the Purchase Contract goes through the following procedure:
(a) The Purchase Contract is “Calculated”. This means that the Public Registry will calculate the Fees for the registration. These Fees vary according to the Property’s registered value, the area to be purchased, the purchase price, etc.
(b) The Purchase Contract is filed at the Public Registry and paid.
(c) The Purchase Contract goes to the “Diary” Department, were it will be registered as a presentation, and a presentation number will be provided.
(d) The Purchase Contract goes to the “Scan” Department, were it will be completely scanned.
(e) The Purchase Contract goes to the specific “Section” (depending on the location of the Property) for the “Calification”. This means that a complete and detailed analysis will be done for the transfer Registration.
(f) The Purchase Contract goes to the Legal Department for consultation and confirmation for the transfer Registration.
(g) The Purchase Contract, if is authorized, goes to the specific “Section” for the transfer Registration.
(h) The Purchase Contract goes to the “Scan” Department, were it will be scanned completely with the Registration seal.
(i) The Purchase Contract goes to the “Delivery” Department, were we would collect the document.

If the Property has a MORTGAGE from the Seller, the following procedure must be done, before starting all of the above:

1. The final payment should be done to the Bank or the Financial Institution.

2. The Bank or Financial Institution after the registration of the payment will issue the Minute of Cancellation of the Mortgage.

3. The Minute of Cancellation of the Mortgage will be presented at the Notary.

4. The Notary will draft the Public Deed of the Cancellation of the Mortgage.

5. The Public Deed of the Cancellation of the Mortgage will be signed by the Seller.

6. The Public Deed of the Cancellation of the Mortgage will be presented at the Bank or the Financial Institution for the signature of the General Manager or the authorized person.

7. The Public Deed with the signatures will be presented at the Notary and the Notary will “protocolize” it and issue the Public Deed of the Cancellation of the Mortgage for the Registration at the Public Registry.

8. At the Public Registry, the registration of the Public Deed of the Cancellation of the Mortgage goes through the following procedure:
(a) The Public Deed of the Cancellation of the Mortgage is “Calculated”. This means that the Public Registry will calculate the Fees for the registration.
(b) The Public Deed of the Cancellation of the Mortgage is presented at the Public Registry and paid.
(c) The Public Deed of the Cancellation of the Mortgage goes to the “Diary” Department, were it will be registered the presentation, and a presentation number will be provided.
(d) The Public Deed of the Cancellation of the Mortgage goes to the “Scan” Department, were it will be scanned completely.
(e) The Public Deed of the Cancellation of the Mortgage goes to the specific “Section” (depending on the location of the Property) for the “Calification”. This means that a complete and detailed analysis will be done for the Cancellation of the Mortgage.
(f) The Public Deed of the Cancellation of the Mortgage goes to the Legal Department for consultation and confirmation for the Cancellation of the Mortgage Registration.
(g) The Public Deed of the Cancellation of the Mortgage, if it is authorized, goes to the specific “Section” for the Cancellation of the Mortgage Registration.
(h) The Public Deed of the Cancellation of the Mortgage goes to the “Scan” Department, were it will be scanned completely with the Registration seal.
(i) The Public Deed of the Cancellation of the Mortgage goes to the “Delivery” Department, were we would collect the document.

Contact Us for al of your Panama Real Estate and Panama Relocation needs.