Glossary · Market & investment
Construction payment plan (plan de pagos)
Definition
In Panama pre-construction, the payment plan spreads the down payment across the build — for example, 10% at signing and monthly installments until reaching 20%–30% — with the final balance paid by mortgage or cash at the unit's delivery.
In practice
It's the practical reason many foreign investors enter through pre-construction: instead of wiring $80,000 at once, capital flows in over 24–36 monthly payments as the build advances. What to negotiate and verify: what happens to paid installments if the bank declines the balance, whether payments sit in trust or go straight to the builder, and both parties' late penalties. All of it lives in the promise contract — the document we review with you before signing.
Related terms
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Real estate investment service →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