The Problem With Rights Of Possession
Property In Panama
June 20, 2014, Panama City, Panama: Rights of possession property in Panama comes with particular risks that can’t always be overcome.
Dear Live and Invest Overseas Reader,
A friend of a friend is trying to resolve some title issues to do with property that the company he works for has purchased in Panama over the past several years. He got in touch this week to ask my thoughts. When we sat down to meet, and he began to present the details of the situation, I realized that he has a bigger problem than I anticipated.
The company has been buying relatively small parcels of land but dozens of them, and every piece is rights of possession. At this point they have not been able to obtain actual title for anything they "own."
Rights of possession (ROP) properties in Panama are complicated. ROP can be registered and transferred, but, unlike with titled property in this country, there is no central registry. Also unlike with titled property, someone else can quickly establish rights on ROP land. With titled land in Panama, adverse possession rights don't kick in until after 15 years.
So in addition to the titling process dilemma, the guys who've been buying up all these remote ROP pieces also have a "maintaining possession" dilemma. Bottom line, they're trying to figure out how to keep invaders at bay.