Source: Flickr Introduction – Our law firm, Panama Legal, periodically gets queries about the expulsion process in Panama for residential real estate. Listed below follows a quick summary of the process and amount of time included. This is not legal advice, just a summary of what is involved. Suitable Law – Law # 93 dated
Introduction – Our law firm, Panama Legal, periodically gets queries about the expulsion process in Panama for residential real estate. Listed below follows a quick summary of the process and amount of time included. This is not legal advice, just a summary of what is involved.
Suitable Law – Law # 93 dated 1973 is the law that covers domestic real estate leases in Panama. Some leases that would be left out from coming under this law would be leases with following characteristics:
* leases of rural residential or commercial property
* leases of residential or commercial property in the gone back Canal Zone
* leases where the rent is computed by the day such as a hotel, motel, bed and breakfast, boarding house, Inn, etc.
* leases of home primarily designated as vacation property where the term including any existing renewals of the lease is under 180 days
* leases whereby the government of Panama or its towns are celebrations in the lease arrangement. Nevertheless if they do appear in the lease agreement as the homeowner or property owner they can utilize the expulsion arrangements of the appropriate law we are handling here.
Rental Values – If the residential real estate in concern has a preliminary lease in excess of $150 each month, the contract can incorporate rental boosts as consented to by the parties of the lease agreement.
Lease Term – There is terrific freedom allowed picking a term for the lease as long as the rental value remains in excess of $150. There can also be provisions for extensions of the lease term also.
Lease Cancellation – The tenant is allowed to cancel any residential lease on One Month written notice.
Security Deposit – Usually a down payment equivalent to one months lease is sent to the Panama Housing Ministry, which is returned at the end of the lease unless the property owner sues for damages.
Eviction Procedures – This is usually going to take 120 days. The collection of the unpaid rent (if any) is going to take about 270 days. If the work of the court is high legal processes might take longer. Do not plan on it going any much faster.
Conclusion – The expulsion process is a fairly long one. In many other countries it can even take longer. Some nations that are known for their big amounts of homeless individuals do have more abbreviated expulsion procedures. If you are leasing to an expatriate one has to keep in mind that they may up and decide to leave Panama someday. If they do this discretely and not pay lease for their last few months here the proprietor would suffer. They might have their funds out of the country along with all their possessions. They could likewise have their assets produced in foundations and corporations that you understand absolutely nothing about for that reason keeping them immune from your connecting them.
If you are a property owner and are concerned about renting to foreigners contact our law firm and we ought to be able to develop some protective measure for you that are legal.
If you are a proprietor never take part in any self-eviction practices. Never ever disconnect the electrical energy or water, never ever change the locks and do not decide that their front doors or windows need painting on a Saturday night and eliminate them for painting. Renters could submit counter claims against your legal action and additional extend the time frames for eviction. Do look for competent legal counsel.