This is something Panama needs to do in order to assure buyers that their deposits that are often co mingled with construction funds are not in jeopardy in case of non performance on the part of the developer.
The government of Panama intends to create a trust fund fed by payments from buyers of construction sites, to be used as collateral against the project being abandoned or defects being discovered. The Authority for Consumer Protection and Competition (Acodeco) is proposing a trust as part of a system that protects consumers in the event that the promoters of a construction project abandon it or fail to deliver the warranties after completed.
An article in Prensa.com reports that “The idea is that buyer’s payments remain intact in the trust until the work shows progress and / or reaches a certain level of pre-sales, ensuring its full implementation.”
“The scope of this measure is being discussed by businesses connected to the area. Yesterday, the administrator of Acodeco, Pedro Meilan, described in general terms the most important points of what would be included in a bill to be taken to the National Assembly . “
When I was purchasing land in 2010 there was no “escrow” account. They’d never heard of it. I finally got the bank to do a hold of sorts on our money pending them receiving notice from the Public Registry that the land had been properly transferred. They also have no clue regarding covenants or easements that I could find. That’s another issue that needs help.