30. How to Check Your Panama Property in Public Records
Imagine getting ready to finalize the sale on your property and you discover a lien that halts the sale. Or, coming back to Panamá after some time away, only to discover a stranger claiming ownership of your property. Yes, these scenarios are possible—and it's not discussed nearly enough.
The purpose of this post is to empower you to defeat the scammers! One way to do this is by regularly checking your property records in Panama's Public Registry.
Squatting Rights & Scams
Panama has a unique "Right of Possession" system where individuals can claim ownership of a property through squatter's rights. This means prolonged absence from your property, coupled with the presence of someone who wants it, could lead to you losing it.
Additionally, scams targeting expat property owners are definitely a thing, especially in rural areas. I've recently learned that the labor courts make it easy for scammers to file bogus cases. I believe this type of scam is going to become increasingly prevalent as expats drive up prices and push the locals out of their neighborhoods.
To be honest, when the developer who sold me my properties recommended I regularly check public records to protect myself, I didn't take it super seriously. I had the "It won't happen to me" mentality because my property is in a pretty protected area and I knew I would never mistreat anyone who did work for me. Even so, I did check...just a bit erratically.
Recently, just one week before I was due to check again, my real estate agent notified me that he found a lien on my property. In the days following this message, I found out I was one of several victims of a common scam.
In my case, a former employee of my builder fabricated a totally fake story and filed a $17,000+ claim with the local labor court. As a result, I had to take my house off the market and spend a significant amount on legal defense. (Because the case is currently pending, I'm not at liberty to discuss the details. But, I will definitely be following up—on both the civil and criminal fronts—when things get resolved!)
How to Check Your Panama Property Records
Thankfully, Panama's Public Registry provides a user-friendly online platform for checking property records.
Here's a step-by-step guide to keep yourself informed:
- Head to the Public Registry website: https://www.rp.gob.pa/
- Register for an account and log in.
- In the left sidebar, click on "Folios."
- From the "Tipo de Búsqueda" menu, choose "Inmuebles" (Real Estate).
- Click on the "Datos de Inmuebles" (Property Information) tab.
- Under "Titularidad" (Ownership), use the dropdown menu and choose "Titularidad Registral."
- Enter the exact name your property is registered under in the "Titulares Registrales" box.
- Scroll down and click "Buscar" (Search).
- When your property appears in the table, click the eye icon in the "Ver" (View) column.
- Click on the "Elementos Activos" (Active Elements) tab. This is where any new legal actions against your property will be displayed.
Proactively Protect Yourself
Checking your public property record(s) will not stop the scams, but it will put you in a position to defend yourself before you lose by default.
Remember, the Panamanian legal system is not likely the legal system you're used to and it prioritizes its citizens (especially it's workers), not its expats.
Here's what I recommend to proactively protect yourself:
- Understand that it CAN happen to you. It's naïve and dangerous to think it can't happen to you. It can happen to anyone!
- Schedule monthly reminders: Set a recurring calendar alert or to-do list item to stay on top of regular property record checks.
- Seek legal advice: Look into holding title to your property in the name of a private Panamanian foundation (I'll be covering this more in a future post, but it's not too soon to start your own R&D!). And, if you discover any suspicious activity in public records, hire a reputable Panamanian lawyer to defend you.
By being proactive, you can help safeguard your Panamanian dream and property, so do take this seriously!
