How to Protect Yourself from Panama Real Estate Developers
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Not all developers are created equally, and some developers of Panama real estate projects are more notorious than others. Over the last few years, the construction boom has made dealing with developers a delicate matter. In almost every instance, developers in Panama have heavily one-sided contracts that are beneficial to them and leave a buyer at a significant disadvantage, meaning when problems arise or constructions gets delayed, Panama real estate developers are not held accountable.
With all of the activity and the high sales volume in the Panama real estate market, conflicts between developers and buyers have become more frequent in recent years. Delays in construction, changes in building specifications, projects that don’t get off the ground, and missed or delayed payments by the buyers are some or the most common situations that typically arise in a real estate transaction in Panama.
If you find yourself in a situation where you feel that your Panama real estate investment is in jeopardy, you should know that you have options, even if the non-compliance is in part your fault, there may be a possibility to get your money or at least a portion of it back. It is very important that you take action sooner rather than later, because once the developer obtains the occupancy permit for the building or cancels your contract, it can be more complicated to have a successful outcome.
Our experience with real estate developers in Panama is that in almost all cases they are hesitant to return deposits and/or pay damages to buyers, even if the incompliance is clear on their part, so some sort of legal action will usually need to be taken to pressure them to comply, secure your investment, or force the developer to negotiate.
Many of our clients have had great success with the firm Panama Relocation attorneys who specializes in all legal aspects of a real estate transaction in Panama. From contract formation to due diligence research, the team at PRA has done a fantastic job for many of our clients who have either bought or sold real estate in Panama. They also have a very strong litigation team that can go to battle against the large developers if you feel that you have been wrongly done. They have recently had success with several very high profile builders in Panama and have been able to successfully negotiate settlements, in most cases avoiding a trial.
The message is, if you are thinking about purchasing Panama real estate, especially new construction from a developer, make sure to do your homework and put together the right team consisting of a trustworthy Panama real estate agency and a solid, respected law firm. It very well may be the best decision you make.
