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Purchase of Real Estate Property Through a Legal Entity

We are pleased to provide you with a detailed explanation of our services and fees as outlined below:

Due Diligence and Title Search:

  1. Public Registry Office:
    1. To verify the property´s ownership records.
    2. Verify whether the property is free of any restrictions or encumbrances.
    3. If the seller is a legal entity, verify that the person signing the contract has the authority to do so and it exists.
  2. National Authority of Land Management (ANATI) and General Revenue Directorate of the Ministry of Finance (DGI):
    1. This is to verify if the property value has been updated and property taxes have been paid.
    2. If the seller is a legal entity, verify that the franchise tax fee has been paid.
  3. Water institution (IDAAN):
    1. To verify if there are any outstanding water bills.
  4. Garbage Disposal Company
    1. To verify if there are any outstanding garbage disposal bills
  5. Electrical Power Company:
    1. Verify whether any electricity bills are pending.
    2. Verify the average amount of electricity payments.
  6. Revision of the Promissory Purchase and Sale Agreement.
  7. Amending the Promissory Purchase and Sale Agreement.
  8. Revision of the Final Purchase and Sale Agreement.
  9. Drafting a corporate minute authorizing the purchase of the real estate unit.
  10. Drawing up the Public Deed of Purchase and Sale Deed (“Title Deed”) containing the final purchase and sale agreement and the other documents required for the closing.
  11. Appearing before a Notary Public along with the seller or their legal representative for the signing of the purchase and sale deed.
  12. Submitting the Public Deed of Purchase and Sale Deed at the Public Registry Office for transfer of title.
  13. Submitting a copy of the registered Public Deed to the National Authority of Land Management (ANATI) to update the ownership information and property price for tax-related purposes.
  14. Updating the records in the Directorate of Revenue to access property tax information.
  15. Overseeing the entire purchase and sale transaction from start to finish.

LEGAL FEES

Description

Amount in USD

Comments

Due Diligence

250

Revision or drafting of the promise to buy contract

550

The fee includes the Follow-up contract revision

Drafting a minute for a legal entity

250

Notarization of the deed

250

The fee does not include the notary fee. The fee includes the final contract draft.

Registration of the deed

150

The fee does not include the Public Registry fee.

Updating records at ANATI

75

The fee does not include the records updating fee.

Changing the registered email of the property at DGI

75

The fee does not include the Notary Fee.

Attending the contract signature and the deed signature

150

Per appointment

Notarization of contract and other documents

35

Per notarization. It does not include the notary fee.

Approximate Total

1785

ESTIMATED EXPENSES

Description

Amount in USD

Notary fee for drawing up the public deed of purchase and sale

80 to 250 (Fee depends on the extension of the purchase deed and the fiscal stamps)

Public Register fee

Depends on the sale price or the cadastral value, whatever higher.

Land Authority (ANATI) fee for records update

5

Notary fee for signature certification

25

Notary fee for check custodian if the final payment is through a check.

250

If you do not have a legal entity incorporated in Panama, our fee for assisting you with the registration is USD 1,500.00, which includes all expenses.

Period of registration:

  • Registering a legal entity after due diligence will take seven business days or more.

A Corporation/Foundation's Yearly Maintenance Fees are:

Description

Amount in USD

Yearly Franchise Tax (Corporation)

300

Yearly Franchise Tax (Foundation)

400

Yearly Resident Agent Fee

250

Yearly Compliance Fee

250

Payment of franchise/property taxes

45

Note:

  • The legal fee and expenses are approximate
  • Any additional service not contemplated will be charged separately.
  • If a real estate reservation agreement is required, the fee is USD 350 for the drafting or revising of such an agreement.
  • We will notify you immediately if we require additional expense money.
  • If you already have a legal entity, you must prove that you are the shareholder or final beneficiary of the entity.

Payment Schedule:

  • We require a cash advance of USD 1,500.00, plus an additional USD 500.00 for the initial expense.
  • If you require a legal entity registration, a cash advance of USD 3,000 will be needed instead.
  • The remaining attorney fees balance shall be paid once the purchase and sale transaction has concluded.

To contract our services, email us at lill@kerycruz.com