Before you go “under contract” it is important to know your rights and how those rights will change once you sign.

Before you sign you have no responsibility.

After you sign you have to do what the contract says.

Real Estate Agents and Signing

Often you will be working with a realtor when you decide to buy.  So when it comes time to sign on the dotted line, they will push to get you to sign.  And sign now.

You feel pressured.   This could put you at a disadvantage.  But you don’t have to be.

So what do you do?

Take your time.  

Make sure the language of the contract is what you want it to be.

If it is in Spanish, make sure you have a good translator.

Don’t hesitate to change what ever you want or at least ask for it.  If a lawyer, or seller, or buyer won’t change it, make sure you understand why, and are okay with it.

You don’t want to discover that you made a stupid and costly mistakes just because you didn’t want to be the pushy foreigner.

When you are more in control of the contract language and process, you lower your risk.

Due Diligence Period

If you are buying a property, consider extending your due diligence period.  That way you will have more time to research the property.  Of course, no seller will agree to a long due diligence period, that isn’t fair to their interests, but it needs to be long enough for you to adequately investigate potential problems.

Earnest Money

Don’t risk too much earnest money if you can help it.  Put down as little as you can get away with.

Get What You Want

Include language to get what you want.

There are many practical ways to reduce your risk with a contract.

Push for concessions by the seller to see what you can get.  Maybe you want them to leave the hot tub, or clear up an easement issue.   It doesn’t cost you anything to try to add those conditions.

Relationship with Real Estate Agent

We are not saying that real estate agents are bad people.

But you need to understand the reality of your relationship before you sign a contract they are advocating.

Your realtor wants to get paid.

He doesn’t get paid if you don’t sign.  Your real estate agent is looking out for themselves, more than for you.

In Panama, there is no code of ethic for real estate agents and no oversight.  So there is more of a possibility of fraudulent behavior.  Not that there necessarily will be, but it is something you need to keep an eye out for.

Don’t feel that you can pushed into an agreement you are not comfortable with.  Hold your ground.

Most of all, do not sign unless you are ready, comfortable, and confident. signing.