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Real Estate Preconstruction FAQ PDF Print E-mail
Written by Panama Real Estate   

Preconstruction Real Estate Questions and Answers

Should a buyer use the services of a realtor when purchasing pre
construction properties?

Yes, a realtor has relationships with developers that can be quite
beneficial to the buyer.  He/she can negotiate the terms of the
contract for you and advise you on the best course of action depending
on your needs; (the developer may not since it?s not always in their
best interest to do so), the realtor may know some vital information
regarding the financial status of the developer.  The realtor is also
in a position to inform you when new pre construction opportunities
arise before they are even made public. This means the buyer may have
an exclusive opportunity to get in on the ground floor of pre
construction prices.  Your realtor will find out information about the
pricing in similar buildings being built in the neighborhood along
with information about civic and cultural developments. Furthermore
the developer compensates the realtor, so in effect you are getting
the services of the realtor for free. Since the purchase price of the
property is the same with or without a realtor it makes sense to have
a person who is not just a real estate agent advise you, but a real
estate consultant.

What it the PRE SALE REQUIREMENT?

Most construction lenders (Banks)require to the developer to sell 50%
of the building in order to give them the loan. Pre-selling of
buildings and resort condominiums has become a standard process, and
virtually every condominium is pre-sold today. Once the required
pre-sales have been reached and construction has begun it is a sure
sign of a successful development.


As a purchaser what protection do I have buying a pre-sale?

While I can't speak for every location in the country, here in Florida
the purchaser of a pre-sale condominium is protected in several ways.
The most important protection under Florida law is your money or
deposit is held in escrow until the condominium is completed and only
released at a proper real estate closing where the unit is transferred
to you unless the developer specifically indicates in the contract
that a portion on the deposits will be used for construction.

What is a Public Offering Statement?

A Public Offering Statement includes condominium documents,
association by-laws, and the pre-construction purchase and escrow
agreement.  Under Florida law, purchasers have fifteen (15) days from
receipt to review and complete or rescind any pre-sale purchase and
escrow agreement.

Why buy a pre-sale when I can buy one already completed?

Two basic reasons:
(1) Limited location and availability.
(2) By purchasing at pre-sale you are able to buy at a reduced price,
and coupling this with the appreciative expectations upon completion
makes it a very wise investment.
Many people have purchased pre-sales for reason number 2, and many of
these people have sold their units even before the building is
completed.

How much money do I need to contract a pre-sale condominium?

Usually 20% down. 10% at contract and 10% at ground breaking

Can I sell my pre-sale purchase before completion?

Yes you can with a written permission from the developer


Thank your for your time, and we look forward to a long and profitable
relationship with all of our clients.

For more information on upcoming pre construction projects and how to
invest in them, please feel free to contact us .
 

Panama Real Estate News

U.S. retirees fuel boom in Panama

Dollar economy, cheap health care are drawing many (panama real estate)

By JENALIA MORENO
 Copyright 2007 Houston Chronicle

PANAMA CITY, PANAMA — Sharyn and Reuben Bronstein are witnessing a building frenzy from the balcony of their 22nd-floor apartment.
Towering cranes and more than a dozen residential skyscrapers under construction obscure the retired Houston couple's view overlooking Punta Pacifica, Panama City's hot new foreign enclave.

In one direction, Donald Trump is building a 68-story, sail-shaped edifice on the Pacific Ocean called the Trump Ocean Club International Hotel & Tower.
In another, Spanish company Grupo Mall, which is selling properties out of Houston, is putting up Los Faros de Panama, The Lighthouses of Panama, a glitzy development complete with apartments, a casino and a hotel.

At least 170 residential towers worth $3.2 billion are planned or currently under construction, according to a recent survey by real estate consultancy Prima Panama.
Fueling this boom, in part, are U.S. retirees lured by Panama's cheap health care, dollar economy and widespread use of English.
Read more...