Bienes raíces

Market Analysis (6 steps)

1. Property Productivity Analysis

A. Physical Attributes (Site and improvements analysis)
B. Legal and Regulatory Attributes

- PublicProperty Rights

In the Republic of Panama laws there is a clear recognition of the rights associated with real estate: property, use, transference, etc (Civil Code, Chapter x). Fee simple, leased fee,leasehold fee and fee simple condominium are the most common property interest regarding to commercial and industrial properties. For the ZLC, there is a separate recognition of property rights relatedto the land, and to the improvements.

The land is property of the ZLC, which is a governmental agency, and leased to private companies for development. Legally, the lots remain as part of theoriginal parcel, and are identified through the block and lot numbers. The leases have a fixed rate, according to the following table, and the law establishes a long-term lease (xx years) period for theleases.

[Insert table of ground lease rates for ZLC]

Because the ZLC was specifically designed to promote private investment, the ZLC recognizes the property rights of the site tenants on theimprovements they build. After each building is completed, the tenant submits all data to the ZLC, and this agency allows the registry of the property rights, which are denominated “constituted domaintitles”, and registered at the EARP with a property number of id (Finca Number). This titles are only valid as long as the improvements exist, and becomes extinct if they are demolished or totallydisappear for any cause. The recognition of the constituted domain titles has two relevant effects:

1) The property may be traded in the market, with an authorization of the ZLC, both for rent orsale. The only limitation is that new tenants or owners must be companies registered at the ZLC. If the property is sold, the ground lease is transferred to the new owner, through a new contract....