Titling and Property Registry
Property titles in Panama are very similar to “fee simple” titles in the United States.
Panama has a very sophisticated Public Registry with a Cadastre Department that oversees the registration of the country's property titles. The property title is the preferred type as it is easily verifiable in the Public Registry System, as well as providing the greater security of Panamanian real estate laws, as well as an accurate point of view on investments, since private property is guaranteed by the Constitution of the Republic of Panama.
The titling process is a long procedure, which requires the following requirements:
Power of Attorney
Application or degree request
Proof of how possession was acquired (For example, through a Possession Rights Purchase Contract)
Certification issued by the Government Authority stating the rights of possession (Cadastre, Agrarian Reform, Mayor's Office, Corrected and/or witness)
Original plan signed by an Authorized Official Engineer.
Certification of the Municipal Council, stating that there is no opposition to such titling.
Testate
Will in Panama
A will is the document necessary to inherit.
When you are young and full of life, it is difficult to think that one day we will die. It is when we are reaching maturity and that we have reached some financial goals when we stop to think, what will happen to our assets once we die?
The most advisable thing is to leave to a Lawyer or person you trust, your wishes or feelings as to what assets or assets you are going to distribute after your death. This will avoid discussions and uncomfortable situations between the family (whether close or distant) or their friends who may feel that they have a right to claim their assets or inheritance.
Therefore, the will is the document that serves as a legal tool to ensure that the will of the deceased is fulfilled, as long as this document meets the requirements of Law 2 of August 22, 1916 of the Civil Code of Panama.
Once the person dies, their will in the will must be confirmed in a succession process.
In Panama there are two types of succession process: testate (when there is a will according to the law), or intestate (when there is no will; or when the will exists, but does not meet the requirements of the law).
Will classes in Panama
The three most used types of wills are:
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The Holographic Testament: It is the one written completely by hand by the testator. To avoid nullity in this type of document, it is necessary to consider certain formalities, such as the absence of erasures, the use of legible handwriting, defining the place and date of its writing, legibly presenting the name and signature of the testator, as well as the list of assets. and of the corresponding heirs or legatees.
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The Open Will: It is written before a Notary Public of Panama, who at the same time acts as a witness. Said notary presents the will as a public deed and inserts it into the notarial protocol, reducing the risk of destruction or loss. Although it is one of the simplest methods, it has the disadvantage that its content may be public knowledge.
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The Sealed Will: This is when the person draws up their will, and then it is delivered to a notary to be sealed, but without the notary (or anyone else) having public knowledge of the contents. In this type of will, the seal of the notary shows that its content is the will of the deceased.
Additionally, there are other types of wills such as the military, the maritime, and the one registered abroad. The will registered abroad has the peculiarity that it must follow the authentication process with legalization stamps to be valid in Panama.
How Are Patrimonial Assets Distributed In Wills In Panama?
Panamanian law distinguishes two ways of distributing assets in a will:
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Under Universal Title: When all the assets, rights and obligations are transferred in designated percentages to each heir. For example, designating fifty percent (50%) of the value of the assets to one person.
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A Singular Title or A Particular Title: When a property or private right is transferred to one or several persons. For example, transferring the title of a property in the name of a person.
It should be noted that the testator may not always leave his assets to whomever he wishes, since there are legal obligations with the descendants (children), ascendants (parents) and spouse (if any), who are called forced heirs.
When inheriting, it must be taken into account that both the obligations and the rights of the deceased are transferred.
To this extent, the heirs also have the possibility of filing actions against those persons in which the deceased has claims to make; as well as, they have the legitimacy to intervene in the processes where the deceased has been sued, and for this it is required to be declared heir of said person, which is achieved once the succession process has been activated.