Due to a change in the Panamanian Law, there is a change of the Auction Process.
The process had been changed that instead placing a 'sealed offer', a bidder is now able, if qualified, to participate in a REAL TIME AUCTION
NEWS*:
Due to the change of the Panamanian Law and the implementation of the Law No. 22 from 2006, the Public Auction process will be changed according to Article 44 of such law.
In the FUTURE any sale will take in place form of a REAL TIME AUCTION, where a qualifying bidder is able to compete and auction in presence the co-bidders.
The following is a short summary of the process established for auctions with a property base price of below US$ 300,000:
The Panamanian Government Entity will publicly announce the auction sale of property.
Any interested party will be able to receive documentation related to each auction , such documentation will regulate any details, if in addition or other then published in the law, ( “Pliego de Cargo” ).
Any Interested party will need to "pre-qualify" by at least placing not later then 48 hours prior to the auction, a deposit of 10% of the property Base price; and / or fulfill any requirements from the PLIEGO DE CARGO.
On the auction day, any "pre-qualified" party will be able to participate on the Public Real Time Auction. Bids are accepted while "at or higher" of the base price. If only one bidder shows up, the Auction will take place, as long the one bidder, offers while "at or higher" of the base price.
Once a bidder has WON the auction, a public document will be issued to the winner and the winner has 5 (five) days to cancel the ‘complete auction amount’ while presenting payment to the selling Government entity if not otherwise informed. Upon complete payment a title transfer deed will be issued.
In case a WINNER fails to cancel the remaining balance ( Auction price, less deposit on base price) within the 5 days, the party will loose the auction assignment and the deposit.
Deposits presented by parties which had not been winning in the auction, will be returned immediately after the auction.
HOW CAN PANAMA REALTOR ASSIST YOU.
Panama Realtor, will publish the next auction days, as soon as available from the Government.
Panama Realtor, will, due to our ethic standards, only be able to represent a BUYER ( bidder) who is willing to place up to the highest amount during such bidding processes, within our clientele.
What does this mean?
i.e. : If the base price for Unit A is $ 30,000
**Bidder 1 is willing to participate on the auction up to the limit of $ 38,000.00
** Bidder 2 is willing to participate on the auction up to the limit of $ 45,000.00
Panama Realtor is unable to represent bidder 1, it would not be fair to bidder 1, while knowing that we also represent a second party who is willing to pay more for the same property.
Panama Realtor will be able to accept offers for representation during such a bid, up to six days prior to the Auction date.
Once we receive you mail indicating the unit you would like to auction and your maximum amount you are willing to offer, Panama Realtor will inform you if we are able to represent you or not.
5 days prior to the auction you will need to send us the complete amount ( by wire transfer) to our Escrow handling account. From there Panama Realtor will issue the 10% payment guarantee and eventual cancel the payment balance in case we won the auction for you. In case we are not able to win the auction for you we will be able to keep the fund in escrow for the next auction day, or we return the funds to you less any bank fees involved
MORTGAGES:
If you are interested to obtain a mortgage for any of the units, sold under Government auction, you will need to know that under the current regulation there is NO TIME, to process any mortgage application before the AUCTION PAYMENT is due! You might be able to get an mortgage in place upon you had been declared the WINNER and after you had been able to make a 100% payment on the auction price!
At present we are awaiting the Government publication for the NEXT / initial auctions under this process. This shall take place approx End of May 2007
Please visit our WebPages Government Sales for updates.
or Contact us for information
*Note:
This is a summary of Law 22 from 2006 and the Ministerial Executive Degree No 366 from 28 Dec 2006.
Despite the best efforts of Panama Realtor Inc. and its affiliates to provide accurate information, including but not limited to prices and availability of residential or commercial units or lots, it is not possible to completely ensure that information contained herein is constantly update and correct. Panama Realtor does not warrant the accuracy and completeness of information, text, graphics, plans, laws and regulations, links or items contained herein.
THIS MATERIAL IS PROVIDED WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED OF MERCHANTABILITY, FITNESS FOR PARTICULAR PROPOSE, OR NON INFRINGEMENT.
See Listings for Goverment Sales
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