Real estate · Panama
Buying property in Panama is governed by the Civil Code: the form of the sale, the Public Registry and the seller’s warranties. This guide explains what to check before you pay and how the law protects the buyer.
The essentials. Check the Public Registry (art. 1755): owner, mortgages, attachments, easements. The sale must be by public instrument (art. 1131) and binds third parties from registration (art. 1761). A registered promise of sale stops the seller from transferring or encumbering (art. 1221). Closing costs are split equally unless agreed (art. 1225).
| Topic | What the law says | Art. |
|---|---|---|
| Registry check | Owner, chain of title, liens | 1753, 1755, 1767 |
| Buyer protection | Registered acts stand against third parties | 1761 to 1763 |
| Form of sale | Writing and public instrument | 1220 and 1131 |
| Promise of sale | In writing; registered deed limits the seller | 1221 |
| Earnest money | Forfeit or return double | 1224 |
| Closing costs | Equal split unless agreed | 1225 |
| Warranties | Eviction (4 years); hidden defects (1 year) | 1245, 1253, 1254, 1260 |
Planning to buy property in Panama? Send us the property number and we will review the registry status and the contract.
Message us on WhatsAppThis guide covers the contract and registry rules of the Civil Code. Restrictions by zone or type of land, and immigration or tax matters, are governed by other laws and are not analyzed here; ask us about your case.
A sale of real estate is not perfected until it is in writing with the legal formalities (Civil Code, art. 1220) and must be executed by public instrument (art. 1131, no. 1).
The Registry is the means of constituting and transferring ownership of real estate and gives publicity to liens (art. 1753); it may be consulted freely (art. 1755); unregistered titles do not affect third parties (art. 1761); and once a title is registered no contradictory title may be registered (art. 1767).
Acts granted by the person who appears in the Registry with the right to do so, once registered, are not invalidated as to third parties even if the grantor’s right is later annulled (art. 1762), and rescission actions do not affect a third party who registered (art. 1763).
A written commitment to sell at a given time or condition; if executed by public deed and registered, the seller may not transfer or encumber the property without the buyer’s consent (art. 1221).
If earnest money (arras) was given, the contract may be rescinded by the buyer forfeiting it or the seller returning double (art. 1224).
Unless agreed otherwise, deed and registration costs are split equally between seller and buyer (art. 1225).
If the property is encumbered with a non-apparent charge or easement not mentioned in the deed, such that the buyer would not have bought it, the buyer may seek rescission or compensation (art. 1252).
Delivery and warranty against eviction and hidden defects (arts. 1231, 1245 and 1254); the eviction action lapses in four years (art. 1253) and the hidden-defects action one year after delivery (art. 1260).
Fees depend on the price, the due diligence required and whether a promise or mortgage is involved. We quote in writing.
Related: compraventa de bienes raíces (Español) · asset protection · legal services in Panama
General information based on the Civil Code (local text) as of October 2026. Transfer taxes, registry fees, land-use rules and immigration matters are not covered. It is not individual legal advice.