Glossary · Legal process & title
Escrow account (cuenta de plica)
Definition
In Panama, an escrow account (cuenta de plica) is held by a neutral third party — a bank, trust company, or law firm — that keeps the purchase funds and releases them only when the agreed conditions are met, typically the deed's registration in the buyer's name.
In practice
It solves the classic closing dilemma: the seller won't sign without seeing the money, and the buyer won't pay without being the recorded owner. With escrow, both are protected and payment becomes automatic upon registration. For overseas buyers it's practically mandatory: it allows a remote closing by international wire without depending on anyone's good faith. The service cost is minor compared with the risk it removes.
Related terms
General information, not legal or tax advice. Every transaction is confirmed with an attorney and accountant.
Term reviewed as of July 2026 · Vaca Group Real Estate, Lic. PN 5904