My post last week regarding being screwed by a developer last week recevied a lot of comments and garneshed a few imformative emails from avid readers. Gail Geerling has worked on a commitee with the American Chamber of Commerce here in Panama to educate buyers on the pitfalls and help them navigate through them. Here commenst are below. I also recieved an email from Mitch Creekmore of Multinational title insurance. Here are his comments.
"If I have a title policy issued and I go to sell and find out someone has committed fraud against my land title, my recourse is to the title company who issued the policy via a claim and the coverage’s, conditions, stipulations and exceptions under the policy. Without it, an owner’s recourse is to no one, not even the notario. Or you can sue the original seller. In the case of Costa Rica, we created the endorsement so each year we can renew it at the owner’s discretion with payment and check the public registry. It’ a minimal cost for the peace of mind it gives. But naturally, the Panamanian agents and attorneys pooh pooh the notion of title insurance and say it’s not needed…., until there’s a problem Sam
Here is Gails suggestions:
It seems as though all is not lost when it comes to getting screwed by a developer here in Panama. So what do you do when it all goes wrong?
According to Gail Geerling, whose company helps foreign investors learn how to navigate the system in Panama, “No longer do buyers- foreign or local- have to accept shoddy, sub-standard construction, outrageous clauses in their contracts, or developers who dance rather than deliver. There is another option.”
Panamanians love acronyms, so of course we expect they’d use one of the longest to refer to Panama’s consumer protection agency, ACODECO. Autoridad de Proteccion al Consumidor y Defensa de la Competencia is a public autonomous entity, which means that it actually has some power to carry out its purpose and follow through—unusual in Panama. It was created in its original form in 1969, and has morphed quite a bit over the years- including at least two name changes and several refinements to the law pertaining to its rights and abilities. Though the changes have all been positive they are somewhat confusing, so perhaps that’s why few consumers are aware of what ACODECO can do for them.
Does ACODECO’s claims system work perfectly?
“Absolutely not”, says Geerling. “It is the usual Panamanian process- sometimes full of bureaucracy and frustration. But after all, we chose to live and invest here, so why not brave the bureaucracy and take advantage of one of the best tools Panama gives its buyers?
It’s not for the fainthearted. There are limitations in the process, and of course most foreigners (especially non-Spanish speakers) will probably want advice and assistance throughout the process. Yet, many of my colleagues and I have taken clients successfully through the process- resulting in repairs or money from the developer. By and large- and to no one’s greater surprise than my own- the process actually works!”
ACODECO’s mandate is to Protect and Preserve the Rights of the Consumer, a fairly broad scope of work covering anything from cases of price fraud to false advertising, to honoring product guarantees.
However, in a speech given by ACODECO’s representative recently at the AmCham Real Estate Forum in Panama City, it was mentioned that nearly 70% of the cases ACODECO are currently handling pertain to the real estate industry.
“It’s not a great commendation for developers in Panama,” says Geerling, “but what we find interesting is that these cases are increasing. People are sick and tired of being taken advantage of, and they’re making a statement: We’re not going to take it any more.”
Restrictions within the process include financial claim limits, and time limitations for making a claim- but options do exist even after those limits have been exceeded.
For more information, email: [email protected] or check out ACODECO’s website at www.acodeco.gob.pa
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