If you have begun to research Real Estate in Panamá in general, chances are that you have come across some new terms that deserve some explaining. Here, we will clarify the Legal definitions behind: Right of Possession (ROP),and Concession.
One of the primary reasons clients come to Griffo Law and stick with us is that we explain things clearly and leave the client with exactly the answers that they are looking for. Below, we will start with a brief summary of Right of Possession and Concession.
Right of Possession (ROP)
This category of Real Estate in Bocas del Toro is significant, because Bocas is a place of foreign investment, transients and ‘snow birds’. This law was designed to protect the local who spends their time year-round in Bocas and out of necessity, must settle on local territory.
With ROP, the use of land is respected over any other type of ‘ownership’ credentials. Therefore, an individual using, building on, and/or maintaining land is a representation of ownership. Ownership of an ROP property can be lost in one year.
A good question then is, ‘What if I buy land in Bocas del Toro, but cannot or do not want to live there full time?’ In this case, many appoint a caretaker to use and maintain the land meanwhile the owner is gone. They may not simply incur ownership, but they will protect the owner from losing their ROP.
If you are nervous about ROP in Bocas del Toro, that is reasonable. There have been innumerable legal disputes and cases regarding ROP. Be sure that the Due Diligence performed is legitimate! Griffo Law is one of few local lawyers on the island that has close enough proximity to evaluate local properties to assure proper Due Diligence. You can count on us to be thorough and accurate in our investigation. Contact Us if you are searching ROP or properties, in general.
Concession
As Bocas del Toro is an archipelago surrounded by water, a relevant term in local Real Estate is: Concession. A Concession entails the rights of an area of water.
By Law, coastal water is owned by the government. However, the law revolving around Concession allows one to apply for use of a space over ocean water. This ‘use’ includes the same actions you would take on any purchased land: living, building, working…etc
If you are considering a purchase of water space in Bocas del Toro, it is recommended to apply for the Concession. A formal receipt of Concession guarantees that ownership of the area is not compromised you cannot be removed.
Concessions consist of different varieties of fees based on their individual circumstances. Contact Us today to determine the requirements of your unique Concession.