5 steps to home ownership

Step 1: Agreement and Research

You've found your property and have agreed on a price with the owner. Next, you inspect the title in the National Registry. The property title comes in the form of the Panamanian "Escrituras." This document states the owner and description of the property. You also request a recent “Certificado de Registracion” which is similar to a title search in the US. Titled Property is the only kind of property you should buy. This document will indicate if there are any leans or other legal complications against the property. All documents must be originals and have the signatures and stamps from the registration office. At the end of this step, you've confirmed the owner of the property and its location, and you've determined there are no existing leans or other legal complications against the property.

Step 2: Bill of sale & Taxes

The seller and the purchaser, go to the nearest city and obtain a form for a “bill of sale.” This document lists the seller and buyer and is basically used for sales tax purposes. You will receive a receipt and a copy of the form. Then you're off to the nearest Notary Public with your representative agent and the seller to transfer the title of the property.

Step 3: Title Transfer

The old title, all previous land documents, and the new tax form are presented to the Notary Public. A Notary Public in Panama does a lot more and is granted far more responsibility than a Notary Public in the US. A Notary Public in Panama, and also in other countries, is a high-ranking official.
The Notary in turn takes all the appropriate data, including that of the new owner, and types up the new title with the new owner's name, the seller, a description of the property, the location of the property, any special terms that may apply, etc. These documents then go into the Chief Notary’s office for final approval.

Step 4: Transfer of Funds for Purchase

Once the Chief Notary has signed these documents, it is then and only then that funds transfer hands. Payment is preferable by a certified check of a bank in Panama or by wire transfer. If a third party is involved then any commission or service charge in the form of a certified check are also to be made.

Step 5: The National Registry

Nothing gets done or completed in Panama until it is submitted to the National Registry and duly recorded. This process normally takes several weeks but can be speeded up by having the documents hand delivered and presented to the main office of National Registry in Panama City. Once you have the title in your hands with all the appropriate signatures and stamps, the property is yours.