The quick answer is, yes, you can.
Panama has two types of documents that describe the ownership of land.
Panama has titles to land, which are kept in the Public Registry. These titles describe the land, and who is the owner.
Panama also has certificates kept in the Agricultural Reform Department, which describe land and who has the “right of possession.” This kind of “title” typically does not qualify you for a bank mortgage in Panama but it does allow you to purchase, build on, and live on property.
Traditionally land in the interior of Panama is “right of possession” property and land in Panama City is usually titled. Costal property and islands have been “right of possession.” However, the Panama Assembly passed a law in April of 2009 that will allow for titling of these properties. The way this works in Panama is that the assembly writes the intent of the law and the executive branch of government fills in the details. This usually takes a few months.
The point being that if you are buying coastal, right of possession, property you may need the services of an attorney to first do a title search and issue a policy for right of possession and then help you gain title to the land.
As with title insurance for titled property a policy on right of possession land insures that the title insurance company will defend your rights if challenged and, if unsuccessful, pay you. Depending on what you choose for an insurance policy the payment may be the price you paid for the land or the current value as determined by appraisal.
