Glossary · Legal process & title
Clearance certificate (paz y salvo)
Definition
In Panama, a paz y salvo is a certificate showing an obligation is fully paid: property tax, water (IDAAN), condo maintenance fees (PH), among others. They are required to close a sale — without them, the deed doesn't move forward.
In practice
They protect the buyer: tax and fee debts follow the property, not the previous owner, so buying without clearance certificates means inheriting someone else's bills. In practice, the buyer's lawyer requires clearance for property tax (DGI), water (IDAAN), and — in apartments — the PH administration's certification that no fees are outstanding. In managed rentals, the same principle applies when settling with a tenant: utilities current before the deposit is returned.
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