You don’t need to search anymore; FORLACOL has the right Title Insurance Company for you!

When you include the Title Insurance FORLACOL offers in your transaction, you pay for peace of mind. Since there was no Title Insurance industry in Panama before January 2006, there is currently no standard among law firms, as there is in the US, about what is all that needs to be research when a buyer requests a title search to identify a title as clear from on-record defects. But when dealing with us, we will instruct, evaluate and insure for you an extensive due diligence, that will show everything there is to know about a property. Including but not limited to all Public records not only from the Public Registry but from other public offices; plus other private documents we request from the seller.

All of this information is then organized into a legal opinion about the property, that added to all other documents and original certifications will form your comprehensive Title Report. Thus, a Title Report is the best way to make a really informed decision about a transaction. Having fulfilled this requirement, we will issue a Title Insurance Policy that will protect your investment against: fraud, criminal and civil issues, mistakes, and other off-records title defects.

Title Report (Search and Examination + Legal Opinion)

The procedure is simple we would only need to know the Finca # and the insured value to start with. It is priced at USD$750.00 plus expenses. An underwriting requirement is for the proposed insured to hire one of our networked law firms to write this Title Report. That is a Title Search with all the attached listed documents, organized into a legal opinion. The cost of this legal work is payable to the chosen network law firm.

You just need to provide us with any information you have about the property you are interested in, pay the Title Report fee, and you will receive a Title Insurance Commitment from us with our invoice for the premium. The Title Insurance Commitment will disclose any problems found on this Title Report, as requirements to be fixed in order to provide you with a title that is clear of any on-record defects. After requirements are met and premium is paid, we issue your Title Insurance Policy to cover you from any off-record defects that may arise in the future.

Insured Value

This can be either your purchase price or property market value, you decide which. The insured value for the policy could also include future improvements like new constructions. It is entirely your choice which amount to insure as limit of coverage against economic loss. That is whether or not to insure future improvements.

Escrow services

Any transaction presents the same challenge when it comes to deposits and closing payments. Getting a Bank account in Panama is a lengthy process, direct wire transfers or foreign bank checks are inconvenient for the parties. Our escrow services are an attractive financial risk mitigation tool. We will recommend a leading provider of escrow services which can customize to meet your needs, making arrangements quickly, accurately, and intelligently to ensure your transaction closes properly.

Rights of Possession (ROP’s)

If you are planning to purchase property under Rights of Possession, we first of all need to clarify that these are not the same as title land. There is no way to effectively clear an ROP from on-record defects. So after careful examination of Panama laws, Lawyers Title Insurance Corporation has decided not to reinsure ROP’s. Rights of Possession are not an insurable interest on a property. It is better for you not pay out any money to the seller, but on your best interest to enter into an escrow agreement instead of a regular Promise to Purchase when buying an ROP. This way you can sing on your deal without risking your funds. FORLACOL will then work with your seller and your selected network attorney on getting this ROP titled or granted in a government concession, proceed with payment and closing according to the escrow agreement terms, and insure your title or concession upon receipt of an acceptable Title Report.

Planning Your Next Visit

We will be happy to assist you on your next visit when scheduled. The best time to get Title Insurance is when entering into a Promise to Purchase, or any time before closing. Have you already made contact with these developers about the property you are considering? We have good relationship with most of them, so if you haven’t been in direct contact, we would be happy to make the arrangements. Since recording of your title, or closings, are a lengthier process they normally will not be completed on your visit if you are here just for under a month. We can gladly follow up on it on your behalf. However if you have already closed on a property we can still properly clear and insure its Title.

Additional Information

Will you be purchasing this property on your personal name or through a corporation/foundation? If you are able to, it is recommended you purchase real estate through a corporation or foundation. I’ll be happy to explain the additional benefits of doing so if you would like. Would you be getting a mortgage, if so have you selected a bank? We have very good relationship with banks providing mortgages to foreign buyers and would also be happy to make this arrangement for you.

Corporation/Foundation to own real estate

This is not for everyone but depends on future plans. If you think that for some reason you may want to resale the property, then the benefit will be that you would not have to transfer title and pay transfer taxes, but the property will stay under the corporation or foundation’s name. What you sell is the ownership of the corporation/foundation instead. In regards to you Title Insurance it will also remain with the property as the insured corporation/foundation will still own the property after you’ve sold. Other benefits include: no need for a last will or testament and a succession trial for property to pass on property to your heirs but corporate ownership transfer instead; your ownership of the entity and thus the property is completely anonymous and not subject to any information exchange treaty for tax purposes with any other country. Also foundations assets cannot be impounded or seized.

Complete cost of corporations are around USD$850.00, and Foundations all inclusive packages average USD$900.00. These are not sold by us, but by our network law firms. These costs will almost always be less than paying title transfer taxes if you or your heirs decide to sell the property in the future. Our network firms also have a Visa and Immigration Services Specialist.

Contact forlacol@gmail.com or Ursula (507) 6676-5151 for more information on how we can advise you regarding title insurance, escrow services, or title search.

Title Insurance Commitment and Policy

Title insurance provides financial indemnification for losses due to on-record or off-record title defects on the property that existed on the date the policy was issued. The extensive work done prior to the issuance of a title policy allows the policy holder peace of mind: knowing that the underwriter carefully investigated the title prior to issuing the policy and; knowing that if a claim does arise the policy holder is indemnified by the insurance company.

A full title search is conducted and a commitment to issue title insurance is issued at closing. Once the property is transferred to the new owner, a title insurance policy is executed and issued to the insured.

Escrow Services

Third party administration of the financial aspects of a transaction provides a more transparent and secure transaction, which minimizes risk and potential miscommunications as the transaction evolves towards closing. The Escrow Company is responsible management and safekeeping of the funds and documents associated with a transaction, and their disbursement in strict accordance with the escrow agreement signed by all parties to the transaction.

The responsibilities of the Escrow Company include:

• Timely receipt and disbursement of funds to the seller, brokers and any other party related to the real estate transaction
• Enforcement of all contract terms with regard to payment procedures.
• Issuing all cash call letters to remind payments
• Notification to clients and project regarding funds status at each stage
• Preparation of closing statements
• Documents custody

Administrative Services

• Managing communications regarding funds with the Buyer
• Tracking all documentation, ensuring that buyers and sellers are in compliance with all contract terms
• Maintaining records and files, and distributing them to the appropriate parties at appropriate times
• Ensuring that required documentation is received and reviewed by the appropriate parties

Advisory Services

• Advising Clients on suggested procedures and standards for the closing process
• Establishing protocols to deal with contingencies or variations fro regular transactions
• Assistance in the development of the real estate closing process
• Determining all required documentation

Joint Marketing Services

• Participation and support in publicity events
• Assistance in the process of educating potential buyers about the sales process

Advantages and Benefits

We believe that these services offered together, as a package, add value (not cost) to the real estate transaction process, providing many advantages to both the developer and clients.

Advantages to Developer

• Increased selling potential of property
• Significant cost savings
• Lower cost than providing services individually

• Reduced administrative burden, allowing the developer to focus on the most important tasks (sales and development)
• Faster deal executing time
• Standardized system and process ensures quicker turnaround time

• More efficient system for executing transactions
• Centralization of activities related to funds management, documentation and closing allows better control and efficiency

• Accurate and up to date tracking of project status and funds

Advantages to Clients

• Real financial guaranty against loss
• Absolute security of funds
• Reduced investment risk
• Increased resale value of the property
• Significant cost reduction vs. requesting all services separately

Contact forlacol@gmail.com or Ursula (507) 6676-5151 for more information on how we can advise you regarding title insurance, escrow services, or title search.

The following is the information our lawyer will obtain in your title search, please do not use a lawyer that is not approved by us, because the insurance company will not accept the search as valid.

The following is the information our lawyer will obtain in your title search.

1. Property Registration Information

a. Location and Address

b. Area in square meter

c. Type description and use of the property

d. Information regarding any burden to the title of the property.

e. Lease agreements or other agreements granting use of the property.

f. Registered liens, easements, encumbrances or limitations.

g. Chain of Title.

2. Certificate of absence of Liens

3. Certificate issued by the Catastro Office regarding total area and registered value of lead and improvements.

4. Survey with Delineation of the Meets and Bounds.

5. Good Standing Tax Certificate for the Property.

6. Good Standing or EVIDENCE OF Payment of water, sewage and other Contributions.

7. Condominium Property Regime, if applicable.

8. Time Share Regime, if applicable.

9. Ground Lease Structure, if applicable.

10. Mortgage Indebtedness and Mortgage Cancellations.

11. Covenants, Conditions and Registrations on the Property.

12. Description of Physical Inspection (including for review of easements for possession by third parties).

13. Impending Litigation. Report of Legal Status of any lawsuits affecting the property.

14. Appraisal of the Property.

Part of obtaining title insurance is conducting a title search. A title search must be done by a lawyer. We work with a network of lawyers that we can recommend to do this search for you. For more information please contact us at forlacol@gmail.com or by phone (507) 6676 5151 (Ursula)