I had previously discussed about the clause developers include in their contracts that allows them to increase the price of a property. But there’s also another clause that needs to be taken into consideration if you are planning on getting a loan from any bank to finance your property.

After the first inspection of the property, you will be usually given a month to complete the remaining balance of the property. Because it is up to the bank to make the payment to the developer, it is important to be on top of the person that is handling your loan request way before the inspection day comes along, since the whole process could easily take more than a month.

In cases where the bank is unable to make the payment on time to the developer, you will usually have to pay an interest of 1.5% after the first month, which could increase even further after two months.

Wednesday, August 29th, 2007 | Posted in Real Estate | 2 Comments »

If you are planning on buying a pre-construction property, there’s a very good chance that you will see a clause in the ‘Promise to Buy and Sell’ agreement stating that there could be a price increment over the value of the property. Although, the clause mentions the possibility of a price drop as well, this is a very unlikely scenario.

In most cases, the price will be increased up to 3% of the total value of the property. The developer will usually attribute the price increment to reasons such as price changes in construction materials, salary, insurance policies and bank financing, among others.

Something to keep in mind when buying a pre-construction property.

Tuesday, June 26th, 2007 | Posted in Real Estate | 2 Comments »

Although, we are always trying to add helpful articles regarding the real estate process in Panama such as The General Process of Buying Real Estate in Panama and Purchasing Real Estate in Panama from Abroad, there is still a large amount of information that needs to be covered.

With that in mind, we have decided to write a Real Estate Guide for Panama, which will consist of a series of articles focusing on each one of the most important real estate topics in panama. The guide is a work in progress and we will be constantly adding new articles with different topics until every topic is covered. (more…)

Tuesday, June 19th, 2007 | Posted in Real Estate | No Comments »

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, instead placing a “sealed offer”. (more…)

Monday, May 7th, 2007 | Posted in Real Estate | No Comments »