Mortgage and lien release in Panama
You paid off the debt, but your land still shows a mortgage, a seizure or another recorded lien. We obtain the document that releases it and follow up until the release is recorded at the Public Registry.
- Authority
- Lender or authority that ordered the lien, notary and Public Registry
- How it is filed
- In person
- Typical timeframe
- Variable: depends on the lender or authority and the Public Registry
Who it is for
- Owners who finished payingWhose mortgage or seizure is still recorded on their land.
- Sellers and buyersYou need the land free of liens to register a transfer.
- Owners who live outside PanamaYou need someone in Panama to coordinate the lender, the notary and the registry.
Problems we solve
- You repaid the loan, but the mortgage is still at the Public Registry.
- You paid the DGI, but the seizure is still recorded on the land.
- The lender has not delivered the release deed.
- You want to sell and the buyer requires the land free of liens.
- You do not know which liens the land has or in whose favor.
Key terms
A finca is a parcel of land registered under its own number at the Registro Público (Public Registry). Mortgages, seizures and other liens on that land are recorded there too.
A gravamen is any lien or encumbrance recorded on the land. A hipoteca is a mortgage. The escritura de cancelación is the public deed in which the lender releases it.
In Panama, people call clearing these liens a liberación de finca (land release). A paz y salvo is a certificate showing the land owes no property tax to the DGI, Panama's tax authority.
What releasing your land involves
Releasing a finca means cancelling or lifting every lien recorded on it at the Public Registry. Once done, the land can be sold, mortgaged or transferred.
Each lien is cancelled with a different document. According to the Public Registry's review manual, an entry is cancelled by a final court order or judgment, or by an authentic document in which the party it favors consents.
- Mortgage: release deed signed by the lender before a notary.
- Seizure or attachment: resolution ordering its release, issued by the court or by the DGI collection judge (Juez Ejecutor).
- Recorded family homestead (patrimonio familiar): court declaration ending it, which is then recorded.
- Other marginal notes: depends on the note and the authority that ordered it. We review each one.
Why a Panama mortgage lien release must be registered
Paying off the loan does not remove the mortgage from your land. According to the same manual, a recorded mortgage is extinguished against third parties only by its cancellation.
If the mortgage includes a restriction on ownership, the land cannot be transferred without the lender's consent.
An example: Banco Hipotecario Nacional
Each lender has its own procedure. At the Banco Hipotecario Nacional, the first mortgage release deed is requested at Customer Service with these documents. The bank's paz y salvo costs B/.5.00 and notary costs range from B/.10.00 to B/.100.00.
- Loan payoff receipt (last payment).
- Copy of the first mortgage deed.
- The bank's paz y salvo certificate.
- A paid-up IDAAN (water utility) bill.
- Receipt for the notary costs.
Releasing land seized by the DGI
A DGI seizure is lifted with full payment, or with a guarantee or payment plan the Juez Ejecutor accepts. After full payment, the DGI issues the orders for the Public Registry (article 1247-K of the Fiscal Code).
This is common for reforestation land with a pending exemption that receives a collection order. The pending request does not stop collection by itself. See DGI seizure of your land for details.
Requirements
- Mortgage: deed in which the lender consents to the cancellation, or a final resolution ordering it. Official source
- Seizure or attachment: final resolution ordering its release. Official source
- DGI seizure: full payment, or a guarantee or payment plan accepted by the Juez Ejecutor. Official source
- Family homestead: court declaration ending it. Official source
- Property tax paz y salvo for the land, required to record acts on the property (article 792 of the Fiscal Code). Official source
- Payment of the Public Registry recording fees. Official source
Steps and timeframes
-
We review the land
We handle itWe check at the Public Registry which liens are recorded and in whose favor.
1 to 3 business days
-
We tell you what is needed
We handle itFor each lien: the document that releases it, who issues it and its cost.
-
You authorize us
You handle itYou sign the power of attorney or authorization so we can act with the lender or authority.
-
Release document
The authority handles itThe lender signs the release deed before a notary, or the court or the DGI issues the release resolution.
Variable
-
Registration at the Public Registry
We handle itWe file the document with the paz y salvo and follow up until it is recorded.
Variable
-
Final check
We handle itWe confirm the land is free of the lien and send you the result.
Costs
| Item | Amount |
|---|---|
| Lender and notary costs Official source | According to each lender (BHN: notary B/.10.00 to B/.100.00) |
| Public Registry recording fees Official source | According to current fees |
| Tramita Todo fee | We will quote you |
We confirm the costs when we review your case. If a lien requires court proceedings, our legal team quotes them separately.
What our service includes
- Review of the recorded liens.
- Coordination with the lender, the notary or the authority that ordered the lien.
- Property tax paz y salvo for the land.
- Follow-up until registration and a final check.
What it does not include
- Payment of balances owed to the lender or the DGI.
- Court proceedings, such as ending a family homestead or cancelling without the lender's consent (quoted separately by our legal team).
Who handles your case
- Handling procedures before Panamanian authorities since 2008.
- Certified public accountants on our team.
- Our own office in Obarrio, Panama City.
- We also serve clients who live outside Panama.
Frequently asked questions
What does releasing land (liberación de finca) mean?
It means cancelling the liens recorded on the land at the Public Registry: mortgage, seizure, attachment, family homestead or other marginal notes. Each one is cancelled with its own document. Once done, the land can be sold or transferred.
I paid off the loan. Why is the mortgage still there?
Because the mortgage is recorded at the Public Registry and does not disappear when you pay. According to its review manual, it is extinguished against third parties only by its cancellation. That requires the lender's deed or a final court resolution.
How is land seized by the DGI released?
With full payment, or with a guarantee or payment plan the Juez Ejecutor accepts. The judge then lifts the seizure and notifies the Public Registry, where the release is recorded. We handle the whole process, including cases with a pending exemption.
Can I sell land that still has a mortgage?
It depends on the mortgage. If it includes a restriction on ownership, the Public Registry will not record the transfer without the lender's consent. We review your land's entry and tell you what is needed before you sign.
Do I need the property tax paz y salvo?
Yes. The Public Registry does not record acts on taxable real estate without proof that it is in good standing with the Treasury. Article 792 of the Fiscal Code sets this rule. We obtain it as part of the procedure.
Can I handle the release from abroad?
Yes. Many of our clients own land in Panama and live elsewhere. We coordinate with the lender, the notary and the Public Registry, tell you which documents to sign and keep you updated in writing by WhatsApp or email.
Related procedures
Property tax seizure by the DGI in Panama: what to do and how to lift it
Enforced collection, payment plans and lifting the DGI seizure of your land at the Public Registry.
Learn moreProperty title transfer in Panama: steps and taxes
Forms 106, 107 and 108, taxes, property tax clearance, public deed and registration.
Learn more