Buying a condo in Panama: what to check under the propiedad horizontal law (Law 284 of 2022)

Condos in Panama are governed by Law 284 of February 14, 2022 on propiedad horizontal (PH). Before you buy, get the building's paz y salvo (clearance showing the unit has no unpaid common fees), which the administrator must issue within 3 calendar days and which the notary must require for the transfer deed. Under art. 23 the fees attach to the unit, whoever owns it, so unpaid fees are a risk that can pass to a buyer unless cleared. Also check the building's insurance, who pays the fees until the sale is registered if you buy from a developer, and the reglamento de copropiedad (the building's rules).

Checked November 2, 2026 against the text of Law 284 of 2022 and law-firm and PwC summaries; the article numbers are those we could verify.

The situation

You are buying an apartment, either resale or from a developer. The Registry tells you who owns the unit (see how to check who owns a property), but it does not tell you whether the building is healthy: whether the unit's fees are paid, whether the building is insured, whether the reserve is funded. Law 284 of 2022, which replaced the earlier PH rules, puts most of that in the hands of the building's administration, and it gives you tools if you know to ask.

The paz y salvo: the key document

The law defines the paz y salvo (art. 6) as the document that shows a unit has no pending common-expense debt. Three rules matter to a buyer:

• Fees follow the unit. Under art. 23, payment of fees "falls on the property, regardless of who owns it". If the seller leaves fees unpaid, the debt does not disappear with the sale unless it is cleared.
• The administrator must issue it fast. The administrator must issue the paz y salvo within 3 calendar days (arts. 57, 88, 89 and 93, as we read them).
• The notary must ask for it. Under art. 114 the notary must require the paz y salvo for the transfer deed.

Late payment carries a surcharge (recargo) of up to 20% of each unpaid fee (definition in art. 6). Ask for a paz y salvo dated close to closing, not an old one.

What else to ask the administration

• Insurance. Art. 25 requires the building to carry insurance (fire and earthquake). Ask for the policy and its dates.
• Fees and special assessments. Ask for the current monthly fee, any approved extraordinary fee, and the building's finances. Under the PwC summary of art. 35, extraordinary or modified fees need approval by 51% of units up to date in payments on first call, and 30% on second.
• Minutes. The administrator must deliver copies of the assembly minutes within 3 calendar days (art. 93). They show what has been decided and what is coming.
• A suspiciously low fee. An attorney quoted in the legal press in October 2026 noted that a very low fee can signal underfunding. That is one opinion, not a rule, but it is a reason to ask what the fee covers.
• The reglamento de copropiedad. It sets the building's rules and is registered in the Registro Público. Read it before you pay a deposit.

If you buy from a developer

• Fees until the sale is registered. Art. 27 makes the promoter pay all common fees from the occupancy permit until the sale is registered or the unit is delivered. Ask the developer to confirm in the contract.
• Delivery and the rules. The promoter must deliver the unit within the promised and contractual deadlines, and must give the future buyer the reglamento de copropiedad. We did not find the article number for these duties, so confirm it with your lawyer.
• Who answers later. The promoter company must stay alive until the guarantee under art. 1343 of the Civil Code runs out, with a Panamanian domicile stated in the promise and the reglamento.

Also check the builder and the project: see what to verify in a builder and how to verify a project.

If there is a dispute

According to the PwC summary of art. 109, Jueces de Paz (justices of the peace) have jurisdiction over PH disputes and the collection of fees. Disputes in a building are common and mostly about fees, noise and common areas. The better your documents, the less likely they reach a judge.

A short checklist

1. Get a fresh finca certificate for the unit and read the liens and pending entries.
2. Ask the administrator for a paz y salvo dated close to closing.
3. Ask for the insurance policy, the budget, the minutes and any extraordinary fees.
4. Read the reglamento de copropiedad.
5. If you buy from a developer, put the fee payment until registration and the delivery date in the contract.
6. At the notary, make sure the paz y salvo is attached to the deed.
7. Pay a deposit only when these are in hand. The due diligence guide puts the whole sequence in order.

How Proper looks at this

Proper does not sell real estate or any property product, and today it does not receive payment from the professionals it refers you to; if that changes, we'll tell you before it affects you. If you are about to pay a deposit on an apartment, the Clarity Session helps you work out what to ask the building and the seller, and who should read the answers.

Sources

Checked November 2, 2026.

• Law 284 of February 14, 2022, on propiedad horizontal (Gaceta Oficial 29476-C): arts. 6, 23, 25, 27, 57, 88, 89, 93 and 114, from public copies of the text.
• PwC Panama summary of Law 284 of 2022 (arts. 35 and 109) and law-firm summaries of the promoter's duties.
• Legal press, October 2026: attorney's comment on low building fees (opinion, not a rule).