Real Estate Escrow Services in Panama
In Panama, escrow services are regulated by Law 1 of 1984 and Law 21 of 2017. If the funds are to be held in Panama, only licensed trust local agencies can legally provide it. Some of the benefits of an escrow transaction are convenience, reliable and fast service, and peace of mind for securing a business transaction.
These services are required when a party releasing the funds in a transaction needs the assurance of the execution of the agreed deal, prior to releasing such funds; and on the other hand, the party receiving said funds need to have the assurance of the existence and availability of the funds along with its proper disbursement when due.
For instance, real estate transactions may require escrow services to secure a timely deed transfer.
Key aspects of escrow law in Panama
According to law, these are some elements the escrow instrument must contain:
- Complete and clear designation of the settlor, trustee, and beneficiary.
- Sufficient designation of the trustees or substitute beneficiaries, if any.
- Description of the assets, patrimony, or share thereof on which it is constituted.
- Express declaration of the will to constitute an escrow.
- Powers and obligations of the fiduciary.
- Place and date on which the escrow is constituted.
- Designation of a Resident Agent in the Republic of Panama, who must be a lawyer or law firm, and who must countersign the escrow instrument.
- Domicile of the escrow in the Republic of Panama.
Fiduciaries constituted in accordance with the laws of the Republic of Panama are governed by Panamanian law. However, they may be subject in their execution to a foreign law if so provided in the escrow instrument.
The escrow may be constituted on assets of any nature, present or future. Assets may be added by the settlor or by a third party, after the creation of the escrow, with the acceptance of the beneficiary.
Kraemer & Kraemer can provide escrow services in multiple asset classes, including Fiat transactions or non-regulated cryptocurrency transactions, for which our office can coordinate with local or international licensed providers. Contact us today.