Possessory Rights and Titling in Coastal Zones and Insular Territory - Panama
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In the Official Gazette N°26438-B was published the Law N°80 of December 31st, 2009, that recognizes the possessory rights and regulates titling in the coastal zones and the insular territory in order to ensure its optimum use and also enacts other provisions.
In accordance to its article 1, this new law has as purpose the recognition through the Directorate of Cadastre and Patrimonial Properties of the Ministry of Economy and Finances (MEF), of possessory rights and the titling of property upon the patrimonial assets of the Nation, national vacant lots that are competence of the MEF, coastal zones and insular territory. This article states as main reason for the titling in the coastal zone and in the insular and continental territories, the material, peaceful, uninterrupted possession and with animus of owner of the lot of land.
Definitions (article 2):
1. Beach: strip of land that extends between the high and low tide lines.
2. Possession: material ownership with animus of owner in a peaceful manner and uninterrupted for the term established by this law, duly proved by whom claims it, upon patrimonial and vacant assets of the Nation, coastal zones and insular territory.
3. Beach Shore: in the Pacific coast, strip of land that starts in the high tide line and ends in a parallel line to a distance of 22 meters inside the coast and in the Atlantic coast, strip of land that starts in the high tide line and ends in a parallel line to a distance of 10 meters inside the coast.
4. Coastal Zone: strip of land that extends to an area of 200 meters of width from the high tide line inside the coast, onshore, notwithstanding the limitations established in the legal and statutory provisions.
5. Adjudicable Coastal Zone: in the Pacific Coast, strip of land that starts in the line where the beach shore ends and it extends until a parallel line to a width or distance of 178 meters inside the coast and in the Atlantic Coast, strip of land that starts in the line where the beach shore ends and it extends until a parallel line to a width or distance of 190 meters inside the coast.
Possession Recognition (article 3): the possession upon the Nation lands, the insular territory and coastal zones is recognized to whom had occupied it in the conditions established by this law for a term not less than five (5) years.
Proof of Possession: the possession may be proved by the housing, residential, tourist, agricultural, commercial or productive use of the land, as well as by demonstrative acts of material ownership, documents issued by national authorities or local police, community witnesses or by its adjoining landowners. The MEF, in turn to verify the existence of possession in the cases that are in doubt, may use all the probatory means allowed by the Judicial Code. In case of doubts and claims regarding the possession, the alternate mechanisms of conflict resolution established in the law shall be applied, and if these do not obtain a solution, the cases shall be submitted to the courts of justice.
Competent Authority for the Titling: It shall correspond to the Directorate of Cadastre and Patrimonial Properties of the MEF, the granting of the property titles through the payment of the price calculated according to what is set forth in this law.
Granting of Gratuitous Titles (article 5): gratuitous titles of lots of land up to fifty thousand (50,000) square meters (five hectares), located at the adjudicable coastal zone, in National assets, at the insular territory and coastal zones that are competence of the MEF could be granted to persons that could prove the possession following the parameters established by the law (art. 3). This gratuitous titling does not preclude that the beneficiary may title onerously an additional area. It is expressly prohibited the subdivision of lots of land to unlawfully obtain the benefits of gratuitous titling.
The transfer to third parties of the gratuitous titles shall be subject to the payment of the real property transfer tax and other taxes established by the Fiscal Code and applicable laws in the subject.
Adjudication Prices (article 7): the prices for the onerous adjudications of real property shall be fixed in accordance to the reference table of the values per hectare established per regions and zones, as it is exposed in this article 7. The “Table of the values per hectare” that shall be in force for three years, is divided in three regions:
1. Region 1, Pacific Coast, with values that fluctuate between B/.1,000.00 and B/.375,000.00 per hectare.
2. Region 2, Atlantic Coast, with values that fluctuate between B/.1,500.00 and B/.85,000.00 per hectare.
3. Region 3, Insular, with values that go between B/.1,000.00 and B/.700,000.00 per hectare.
The table is divided into two price columns: the first for the lots of more than five hectares up to thirty hectares and the second for the lots of more than thirty hectares. For example: in the urban growth area of Colon Island, the price per hectare for lots of more than 5 and less than 30 hectares, amount to B/.300,000.00 and for the lots of more than 30 hectares amounts to B/.700,000.00, as for the rest of this island the prices fluctuate between B/.15,000.00 and B/.40,000.00.
Term to pay the adjudication price: the purchasers of lands of the Nation shall have a term of fifteen years to pay the established price and during this term, the land shall maintain a marginal note of ownership limitation at the Public Registry, consisting in mortgage and antichresis in favor of the State. The transfers of these properties with ownership limitation shall not be valid, except if dealing with transfers in favor of relatives within the first degree of consanguinity or the holder spouse. Neither shall be valid the transfers of the properties in which no beach access easements had been established within the cadastral plans.
Restrictions (article 10): The mangrove swamps, the indigenous territories and reservations, the protected areas and any other territory subject to legal restrictions of private appropriation shall not be subject of titling.
No possessory rights shall be recognized in the protected areas, except when those had been initiated prior to the declaration of said areas, in whose case, for the use of the lot, the holder shall be subject to the applicable environmental or statutory rules.
Public Access (article 11): all the land purchase requests to the State, under the protection of Law 80, shall be of public access. In case of requests presented by juridical persons, the names of the natural persons that are holders or final beneficiaries that have control over the juridical entity that is used as corporate vehicle for the acquisition of the lot shall be revealed. If dealing with joint stock companies, these shall have registered shares. Any change in the share composition before the adjudication, that had not been informed to the Directorate of Cadastre and Patrimonial Properties of the MEF shall be grounds of non-compliance. The juridical person beneficiary of the title shall be obliged to present its financial statements and the State may publish them. The juridical persons whose shares are listed at the stock exchange of a recognized jurisdiction by the National Securities Commission of Panama shall be exempted.
Easements (article 12): the adjudications must guarantee the easements that allow public access to the beaches of coasts and islands. The violation of this public access shall be considered as an administrative misdemeanor and shall be sanctioned with a fine no less than B/.1,000.00 but no greater than B/.5,000.00. In case of recurrence, the fine shall not be less than B/.5,000.00, but no greater than B/.20,000.00. Any other infraction shall be sanctioned with a fine no less than B/.20,000.00, but no greater than B/.100,000.00.
Titling of Insular Territory (article 13): the insular territory shall only be disposed of under the following conditions:
1. That the existence of possessory rights for a period greater than five years had been proven in accordance to the parameters of this law.
2. That the use of land by the occupants shall be engaged to specific purposes of the country development.
3. That the area had been declared as special development zone.
4. That the area had not been declared as strategic zone or reserved for governmental programs.
5. That the adjudication does not affect areas of use or public ownership.
That the State at all times may declare strategic areas or reserved for governmental programs within the insular territory, honoring the possessory rights previously existent, being able to grant the possessors a concession of use for a period of 20 years, renewable.
Applications in Progress (article 16 - transitory): once Law 80 comes into force, all the applications in progress that support the existence of possessory right shall have to adjust to the reference table of the values of this law and prove the possession in the terms established thereof. Those applications in progress that are not based in possessory rights shall be governed by what is established the law of Public Contracting and the reference table of the values of this law shall be applied to them.
This Law 80 of 2009 includes amendments to several articles of the Judicial Code, the Fiscal Code, Law of Public Contracting and other legal bodies.
AUTHOR: Francisco González-Ruiz A.
Copyright Icaza, Gonzalez-Ruiz & Aleman
More information about Icaza, Gonzalez-Ruiz & Aleman
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Definitions (article 2):
1. Beach: strip of land that extends between the high and low tide lines.
2. Possession: material ownership with animus of owner in a peaceful manner and uninterrupted for the term established by this law, duly proved by whom claims it, upon patrimonial and vacant assets of the Nation, coastal zones and insular territory.
3. Beach Shore: in the Pacific coast, strip of land that starts in the high tide line and ends in a parallel line to a distance of 22 meters inside the coast and in the Atlantic coast, strip of land that starts in the high tide line and ends in a parallel line to a distance of 10 meters inside the coast.
4. Coastal Zone: strip of land that extends to an area of 200 meters of width from the high tide line inside the coast, onshore, notwithstanding the limitations established in the legal and statutory provisions.
5. Adjudicable Coastal Zone: in the Pacific Coast, strip of land that starts in the line where the beach shore ends and it extends until a parallel line to a width or distance of 178 meters inside the coast and in the Atlantic Coast, strip of land that starts in the line where the beach shore ends and it extends until a parallel line to a width or distance of 190 meters inside the coast.
Possession Recognition (article 3): the possession upon the Nation lands, the insular territory and coastal zones is recognized to whom had occupied it in the conditions established by this law for a term not less than five (5) years.
Proof of Possession: the possession may be proved by the housing, residential, tourist, agricultural, commercial or productive use of the land, as well as by demonstrative acts of material ownership, documents issued by national authorities or local police, community witnesses or by its adjoining landowners. The MEF, in turn to verify the existence of possession in the cases that are in doubt, may use all the probatory means allowed by the Judicial Code. In case of doubts and claims regarding the possession, the alternate mechanisms of conflict resolution established in the law shall be applied, and if these do not obtain a solution, the cases shall be submitted to the courts of justice.
Competent Authority for the Titling: It shall correspond to the Directorate of Cadastre and Patrimonial Properties of the MEF, the granting of the property titles through the payment of the price calculated according to what is set forth in this law.
Granting of Gratuitous Titles (article 5): gratuitous titles of lots of land up to fifty thousand (50,000) square meters (five hectares), located at the adjudicable coastal zone, in National assets, at the insular territory and coastal zones that are competence of the MEF could be granted to persons that could prove the possession following the parameters established by the law (art. 3). This gratuitous titling does not preclude that the beneficiary may title onerously an additional area. It is expressly prohibited the subdivision of lots of land to unlawfully obtain the benefits of gratuitous titling.
The transfer to third parties of the gratuitous titles shall be subject to the payment of the real property transfer tax and other taxes established by the Fiscal Code and applicable laws in the subject.
Adjudication Prices (article 7): the prices for the onerous adjudications of real property shall be fixed in accordance to the reference table of the values per hectare established per regions and zones, as it is exposed in this article 7. The “Table of the values per hectare” that shall be in force for three years, is divided in three regions:
1. Region 1, Pacific Coast, with values that fluctuate between B/.1,000.00 and B/.375,000.00 per hectare.
2. Region 2, Atlantic Coast, with values that fluctuate between B/.1,500.00 and B/.85,000.00 per hectare.
3. Region 3, Insular, with values that go between B/.1,000.00 and B/.700,000.00 per hectare.
The table is divided into two price columns: the first for the lots of more than five hectares up to thirty hectares and the second for the lots of more than thirty hectares. For example: in the urban growth area of Colon Island, the price per hectare for lots of more than 5 and less than 30 hectares, amount to B/.300,000.00 and for the lots of more than 30 hectares amounts to B/.700,000.00, as for the rest of this island the prices fluctuate between B/.15,000.00 and B/.40,000.00.
Term to pay the adjudication price: the purchasers of lands of the Nation shall have a term of fifteen years to pay the established price and during this term, the land shall maintain a marginal note of ownership limitation at the Public Registry, consisting in mortgage and antichresis in favor of the State. The transfers of these properties with ownership limitation shall not be valid, except if dealing with transfers in favor of relatives within the first degree of consanguinity or the holder spouse. Neither shall be valid the transfers of the properties in which no beach access easements had been established within the cadastral plans.
Restrictions (article 10): The mangrove swamps, the indigenous territories and reservations, the protected areas and any other territory subject to legal restrictions of private appropriation shall not be subject of titling.
No possessory rights shall be recognized in the protected areas, except when those had been initiated prior to the declaration of said areas, in whose case, for the use of the lot, the holder shall be subject to the applicable environmental or statutory rules.
Public Access (article 11): all the land purchase requests to the State, under the protection of Law 80, shall be of public access. In case of requests presented by juridical persons, the names of the natural persons that are holders or final beneficiaries that have control over the juridical entity that is used as corporate vehicle for the acquisition of the lot shall be revealed. If dealing with joint stock companies, these shall have registered shares. Any change in the share composition before the adjudication, that had not been informed to the Directorate of Cadastre and Patrimonial Properties of the MEF shall be grounds of non-compliance. The juridical person beneficiary of the title shall be obliged to present its financial statements and the State may publish them. The juridical persons whose shares are listed at the stock exchange of a recognized jurisdiction by the National Securities Commission of Panama shall be exempted.
Easements (article 12): the adjudications must guarantee the easements that allow public access to the beaches of coasts and islands. The violation of this public access shall be considered as an administrative misdemeanor and shall be sanctioned with a fine no less than B/.1,000.00 but no greater than B/.5,000.00. In case of recurrence, the fine shall not be less than B/.5,000.00, but no greater than B/.20,000.00. Any other infraction shall be sanctioned with a fine no less than B/.20,000.00, but no greater than B/.100,000.00.
Titling of Insular Territory (article 13): the insular territory shall only be disposed of under the following conditions:
1. That the existence of possessory rights for a period greater than five years had been proven in accordance to the parameters of this law.
2. That the use of land by the occupants shall be engaged to specific purposes of the country development.
3. That the area had been declared as special development zone.
4. That the area had not been declared as strategic zone or reserved for governmental programs.
5. That the adjudication does not affect areas of use or public ownership.
That the State at all times may declare strategic areas or reserved for governmental programs within the insular territory, honoring the possessory rights previously existent, being able to grant the possessors a concession of use for a period of 20 years, renewable.
Applications in Progress (article 16 - transitory): once Law 80 comes into force, all the applications in progress that support the existence of possessory right shall have to adjust to the reference table of the values of this law and prove the possession in the terms established thereof. Those applications in progress that are not based in possessory rights shall be governed by what is established the law of Public Contracting and the reference table of the values of this law shall be applied to them.
This Law 80 of 2009 includes amendments to several articles of the Judicial Code, the Fiscal Code, Law of Public Contracting and other legal bodies.
AUTHOR: Francisco González-Ruiz A.
Copyright Icaza, Gonzalez-Ruiz & Aleman
More information about Icaza, Gonzalez-Ruiz & Aleman
View all articles published by Icaza, Gonzalez-Ruiz & Aleman
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
