Before paying a deposit on a property in Panama

If you are asked for money to reserve land or a house, first review what you are agreeing to and how the payment will be documented.

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Clarify which document you will sign

A reservation agreement, a promise to purchase and sell, and a sale agreement can have different effects. The name on the receipt is not enough to explain your obligations. Request the complete document, including its attachments, before deciding.

Note who receives the money, the capacity in which they act, which property is identified and what commitment each party undertakes. If a broker or representative is involved, request the supporting records for their authorization.

Refund terms must be clear

The Civil Code provides for specific effects for earnest money or a deposit. Do not assume that every deposit is refunded, forfeited or must be repaid twice over: the agreement and the nature of the payment must be examined.

Propose that the document explain what happens if the review reveals a problem, if financing is not obtained, if a party defaults or if the deadline expires. Also define how the decision will be communicated and how a refund will be evidenced.

Arrange the review before making the payment

Prepare a list of questions about ownership, encumbrances, access, area, the plan and the status of the process if the land does not yet have a separate title. Identify which checks are still needed and how they affect your decision to pay.

Keep the offer, drafts, messages, receipts and bank payment records. If you have already paid, indicate the date, amount and response received; do not replace the original document with a summary.

For your consultation, have the following ready

The complete offer, reservation agreement or promise to purchase and sell, with its attachments.
The property registration number, plan and available location information.
Details of the seller and the person who will receive the payment.
Messages about refunds, deadlines and financing, and payment records if you have already paid.

Let us review your situation.

We meet with clients at Calle 3a, Santiago de Veraguas, and arrange remote consultations. Tell us what you need to resolve and which documents you have available.

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