Glossary · Legal process & title
Lien / encumbrance (gravamen)
Definition
In Panama, a gravamen is any recorded charge on a property at the Public Registry that limits or encumbers ownership: mortgages, garnishments, judicial attachments, easements, or antichresis. A property 'free of liens' is the enforceable standard for buying safely.
In practice
A lien doesn't kill the deal — most resales carry the seller's mortgage — but it defines how the closing is structured: the seller's bank issues a payoff letter, part of the price cancels that mortgage, and the release is recorded together with the transfer. What is a red flag: recorded garnishments or lawsuits. That's why the registry certificate is pulled at the start and re-verified right before signing.
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