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Monday, April 22 2019 @ 08:18 AM UTC

Government of Panama Tightens Up Rules To Protect Real Estate Buyers

Real EstateBill 421, recently approved by the National Assembly, introduces new measures to limit the abusive practices of real estate developers. The companies that charge a deposit from their clients must now sign a bond (guarantee) with the Ministry of Housing and Land Management. In cases where the promoter abandons the project, this bond will be used to repay client's deposits. In contracts between developers and consumers the clauses which raise the prices due to increased costs of building materials are capped at a maximum of 2% of the total price of the house or apartment, and the developer must be able to prove or demonstrate that the costs of the building materials actually did increase. Also, developers will be required to deliver projects with adequate water and sewer connections and services. (Prensa)

Editor's Comment: Good. Finally. The government of Panama can do a whole lot more to protect consumers from the abuses of real estate developers. Many members of the English speaking community of expatriates who have purchased property in Panama have fallen victim to some kind of abuse - the stories are varied and the details change with each individual case, however the overall truth remains. The developers have been taking a "screw you, sue me if you want" attitude for years and getting away with it. It's about time the government finally stepped in to put a stop to some of the abuses. And I love the idea of the developers having to obtain a bond or guarantee to protect deposits.

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Government of Panama Tightens Up Rules To Protect Real Estate Buyers | 1 comments | Create New Account
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Government of Panama Tightens Up Rules To Protect Real Estate Buyers
Authored by: Anonymous on Monday, March 26 2012 @ 10:33 AM UTC

How much of this is because of what happened with the Malibu development? I know the guy left holding the bag ended up making good on it even though he was not legally required to. Still, did this scandal play a big part in this being done?