Contracts

A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. In Panama, verbal contracts are acceptable for most transactions but some contracts will require a written contract and the use of a legal professional. Examples of contracts that are required to be in writing to be legally binding in Panama are those for real estate transactions and commercial contracts for more than $5,000.

Real Estate Contracts

Real estate contracts are one of the contracts required by law to be in writing. It is important to have a lawyer draft or review your real estate contract. With the spike in purchases and sales in Panama in the last decade, we have seen the problems with people going alone on real estate contracts. A real estate agent or builder does not have your best interest in mind. They are both looking to make a deal, and will both benefit from the commission. Hiring a lawyer who works for you and has your best interest in mind is one of the only ways to ensure that you are covered and safe. Panama requires that all sales and purchases of real estate be recorded in the Public Registry. This allows for titled property to be checked and ensures that there are no encumbrances on the property. We perform title searches before drafting contracts to make sure that the title is clean.

Commercial Contracts and Private Contracts

As stated above, those commercial contracts worth more than $5,000 must be in writing. This means that most business transactions undertaken in Panama will require a written contract. We are able to assist you with any such transaction. Additionally, we suggest that any agreement that you enter into here in Panama, you get put in writing. It is an insurance policy against any of the myriad of things that can happen.