Promissory Letter of Purchase

The Promissory Letter of Purchase (“Carta de Promesa de Compra Venta”) constitutes the basic document from which the parameters for the commercial transaction between the buyer and the seller, as well as between the seller and the real estate agent (broker) are established. This document reflects the obligation contracted by the seller in the event a sale is carried out without the direct participation of the real estate agent (broker). In turn, the latter shall not present any formal proposal to purchase a property, nor shall he/she engage in negotiations regarding the price of the property, without having been duly authorized to do so by the potential buyer. Likewise, the real estate agent (broker) is not authorized to formulate sale proposals regarding a property without the prior authorization of the property owner.

The commission for the seller
It is customary in the Panamanian market to set the commission level at 5%, to be credited to the real estate agent (broker) for the sale of a property. Nevertheless, setting the amount of the commission is free for negotiation between the parties. Except in the case of an agreement to the contrary, said commission shall be discounted from the payment received by the seller of the property.