Rent with purchase option in Panama 🏡

Actualizado: abr 26

Rent with purchase option is a very popular figure at the present time in the real estate market in Panama.


El alquiler con opción de compra es una figura muy utilizada en Panamá.

Rent with purchase option is an old figure in Panamanian legislation, Law 93 of 1973 in its article 16 mentions it. This figure has become popular in recent years and is commonly used by developers to be able to locate part of the inventory they need to sell and under this figure it is more attractive for potential buyers to undertake the purchase of the unit in a more comfortable way, by being able living in the property before paying the entire price and the amount established as rent is accounted for as part of the payment for the purchase of the unit. Having said the above, I now proceed to explain the aspects that in my opinion are the most important of a purchase option: 1. Sale price: The sale price of the property is basically the one established by the parties, usually the rental fee is taken as part of the payment or payment at the sale price and the percentage that the rental fee represents as part of the payment is also established by the parties. Article 1106 of the Panamanian civil code establishes: "the contracting parties may establish the covenants, clauses, and conditions that they deem convenient, provided they are not contrary to the law, morality, or public order." 2. Non-compliance by one of the parties: When speaking of breach of a rental contract with a purchase option, it must be seen from two perspectives; The first would be the breach of the rental contract in which there would be a penalty for the party that breaches respectively, in the case of the lessor he would have to indemnify the lessee and otherwise the lessee would lose the month that he gave as deposit to the signature of the contract and you could be charged in court for past due months of rent that you have not paid. Now, in the case of the purchase option, as its name indicates, it is an option that the lessee has and its execution is left to the lessee's discretion. For this, there would be no penalty, only losing the first option to purchase the property and it opens the way for the lessor to offer the property for sale to a third party. 3. Formalization of the purchase option: The formalization of the purchase option is usually carried out by a private communication by the lessee, it is established that it will take the purchase option in a peremptory term accepted by the parties and then it will go on to sign a purchase and sale promise, where the parties would accept the percentage of the lease fee agreed as a payment previously in the rental contract and the conditions under which the purchase and sale will take place and the times to execute it will be established. It is important to mention that, in the case of the promise of purchase and sale, the breach by one of the parties would carry a penalty, which in the case of the lessor would be to return all of the sums received as payment at the sale price plus a equal sum and in the case of the lessee it would be to lose the sum delivered as payment at the sale price. As established by the Panamanian civil code in article 1224: "if a down payment or signal had been mediated in the purchase and sale contract, the contract may be terminated, the buyer being liable to lose them or the seller to return them in duplicate." Now that you know the technical aspects, I will tell you the advantages for both parties:  Advantages for the buyer:  Secure the sale price. Divide the sale price into monthly payments. Inhabits the property before paying the full price. Advantages for the seller: Insure a buyer for your property. Receive income in the sale process. You have more time to pay the taxes that the property has generated. I hope this article helps you to understand this figure that is currently widely used in the Panamanian real estate market. Remember to fill out the form to send you information about properties for rent with an option to buy. I recommend you also read: https://www.jsantosf.com/post/ventajas-de-utilizar-una-firma-corporativa-de-bienes-ra%C3%ADces-en-panam%C3%A1 Do you need advice? Fill out the following form:




¡Until next time!



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