Law 6 of 1999 Broker of Real Estate
Republic of Panama – Law 6 of 1999
Establishes the creation of the profession of Corredor de Bienes Raices (Broker of Real Estate), and the creation of the governing body Junta Tecnica de Bienes Raices (Technical Board of Real Estate) in the Ministerio de Comercio e Industria (Ministry of Commerce and Industry).
Corredor de Bienes y Raices – Defined:
The legal entity (natural person or legal), granted the License and the Authority by the Ministry of Industry and Commerce to bring together the seller and the buyer to realize a contractually binding agreement. The Corredor is entitled to charge a commission – typically 5% on a sale – and one months rent on a rental property, for this service.
A Corredor de Bienes Raices is one who habitually and professionally operates as a:
- Mediator
- Intermediary
- Agent
- Representative
- Commisioner (one who extends service and receives a commission)
Between an owner of a property and third parties
For the effects of Sales and Rental, the following are excluded from this definition. They are people who work as:
- Promoters
- Administrators
- Rent Collectors
- Maintenance and similar
Requirements
To become a Corredor de Bienes y Raices and qualify for a license, you must:
- Pass an exam administered by the Ministry of Industry and Commerce
- Obtain a bond in the amount of $10,000 per year
- Obtain Power of Attorney, presented by an attorney to a notary public
- Pay Fiscal Stamps (Timbres Fiscales) yearly of $25.00
In addition, all solicitors of the license for Corredor de Bienes Raices must be:
- Panamanian nationals or foreigners with 5 years legally established residency
- Police Record stating you have never committed a felony against; the nation, public faith, the admission of justice, honor.
Governing Body
The Junta Tecnica de Ministerio de Commercio y Indistria (Technical Board of the Ministry of Industry and Commerce) is the governing body over Corredor de Bienes Raices and has the following functions:
- Receive and Review the documentation from solicitors of the license
- Ensure compliance – provide continuing education programs
- Adopt Code of Ethics
- Approve, program and regulate the exams
- Receive and grade exams
- Apply sanctions
- Recommend reforms
- Dictate internal order
- To legally receive a commission on the sale or rental of a property, one must have a license.
Sanctions Imposed
All individuals who operate without a license, can be imposed a fine of $10,000 per incident.
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Translated by Mike Ramo
