All property in Panama is not registered in the Public Registry. A majority of this land that is untitled is beachfront. This property is administered by the government, on a local level, and through the Agrarian Reform department. The Agrarian Reform department is under the government office of Ministry of Agriculture. The Agrarian Reform department grants Rights of Possession. The land must be used for its intended purpose, so if it is meant for a residential home then a home must be built.
Rights of Possession are defined as the rights people exercise over a certain piece of property the technically belongs to the government. Whoever receives Rights of Possession from the government is given privileges over the property. It is fairly easy to obtain Rights of Possession. They are usually given after the property has been occupied; the land has been used and maintained for a certain period of time. Once Rights of Possession has been given the person can then start the titling procedure.
Once the Rights of Possession have been recognized by the government then
that person can sell or transfer the property. Buying Rights of Possession land
in Panama is simple and very safe. Due Diligence must be completed before hand.
As long as proper due diligence is completed the risk is extremely low.