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Real Estate Billing: 

Our legal fees for real estate transactions, are based on the Rate of Minimum Professional Fees for Lawyers in the Republic of Panama, as it relates to real estate transactions.  These do not include out of pocket expenses incurred, such as Public Registry fees, transport expenses, Notary costs, etc. 

[sale & purchase] [improvements & other real estate transactions]

However, based on our experience in these matters, we have established flat fees for a number of administrative matters and typical steps involved in the closing process. 

Sale & Purchase

The fees quoted above take into account our participation in the entire closing process, and should not be understood to be stand alone fees for an individual item (i.e. if a client requests that we only take care of the payment of the land transfer taxes, the charge may well exceed $150.00 or $300.00). 

Generally, for a closing to take place (where the client is the buyer), the following steps are necessary: 

1. Title Search
2. Investigation at the Tax Department
3. Drafting of Promise to Purchase Agreement, with meeting with the client
4. Drafting of Public Deed for the Purchase, with assistance at the closing
5. Updating Tax Department records after the purchase 

Clients can therefore expect for the closing legal fees (excluding out of pocket expenses) to include $150.00 for the title search and investigation at the tax department, plus the hourly rate for the drafting, and a further $50.00 for updating the Tax Department records (with the details of the new owner) after title has been transferred.

Clients will be requested to provide a prepayment towards the expenses at the beginning of the real estate transaction.  The amount of the prepayment will depend on the taxes due, registration fees, and the such like. 

Nevertheless, where we represent the seller, or where the buyer has agreed with the seller that we will undertake all steps of the closing, the following steps may be necessary: 

1. Investigation at the Tax Department (find out what taxes are due on the property) 
2. (where we represent the buyer) Title Search of the property
3. In some cases, the seller was never registered at the Tax Department, in which case we have to update the Tax Department records, before we are able to proceed with paying the closing taxes.
4. If the above is true, after registering the seller at the Tax Department, we then have to file with the Tax Department the document which shows that the seller purchased the property. 
5. Pay any taxes which appeared as due in the investigation in point 1.
6. Obtain Certificates of Good Standing (from IDAAN & Tax Department)
7. Prepare the forms, calculate and organise the payment of the land transfer tax (2%) and capital gains tax (10%), as applicable. 
8. Draft the promise to purchase agreement + final public deed of transfer of title
9. (where we represent the buyer): update the records at the Tax Department after the sale has culminated. 

Clients should, in every case, request a Letter of Engagement from the lawyer that is representing them in the closing.  This will outline the estimated fees and costs for their particular case. 

It has been our experience that often after the investigation at the tax department is complete, we find that the seller is not registered in the tax department as the owner of the property, and the records have to be updated.  In some cases we have found, when we go to update these records, that the seller is not even registered with the tax department, and then this has to be done.  

Improvements & Other Transactions

Payments can be made via Visa or Mastercard.  Please see our Credit Card Authorisation Form.

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Last modified 26-Sep-2007 17:37 -0400