Draft bill 172.

Summary.

The draft bill would establish a procedure for municipalities of the Republic of Panama (República de Panamá) to identify, investigate, declare, and acquire ownerless immovable property and movable property without an identifiable owner within their jurisdictions. It refers to the Political Constitution (Constitución Política) and Civil Code (Código Civil) and preserves the powers of other authorities. It defines ownerless immovable property by the absence of an apparent or known owner, and the relevant movable property by the absence of a known or identifiable owner. An interested party would include anyone asserting a right, legitimate interest, or title. The procedure would follow principles including legality, publicity, due process, protection of property rights, and interagency coordination. Municipalities could investigate property of any value, while municipal councils could declare and acquire only property valued below 10,000 balboas.

For property formerly belonging to dissolved legal entities, the bill would first apply any governing special laws and founding instruments. If those sources provide no destination, the property would be used for analogous purposes benefiting the region or municipality principally served by the entity. If no person, body, or legal procedure can carry out that disposition and the property has no certain owner or recipient, it could be treated as ownerless immovable property or movable property without an identifiable owner under the proposed procedure. A mayor could open an investigation independently, at an interested party’s request, or on a municipal council’s order. The mayor would order an inventory, inspection, survey where appropriate, and valuation by qualified municipal staff or contracted professionals. Records for immovable property would include its location, boundaries, physical condition, and value. Before declaration, the municipality would check title and registered rights with the Public Registry of Panama (Registro Público de Panamá) or the relevant special registry. Other public entities would have to assist within their powers.

A municipality or a person with a legitimate interest could initiate the declaration procedure. The mayor would assemble an administrative file containing documents, certificates, inspections, and valuations. For immovable and registrable movable property, the file would include a registry certificate; insufficient registry information would lead to further investigation. After a preliminary finding, the mayor would order notice for three consecutive days in the Official Gazette and a nationally circulated medium. The notice would identify the property, state the proposed declaration, and explain how to inspect the file. Anyone claiming rights could object, with supporting evidence, within 15 business days after the final publication. The mayor would add objections to the file and forward it with a report to the municipal council. The council would decide whether an objection prevents the procedure from continuing. If the requirements are met and no objection is upheld, it would issue a reasoned municipal agreement declaring the property’s status.

Once a declaration concerning ownerless immovable property becomes final, the property would enter the relevant municipality’s holdings. The municipality would seek registration with the Public Registry of Panama through a public deed supported by the municipal agreement, inspection report, valuation, proof of publication, and documentation resolving or confirming the absence of objections. The procedure would exclude national property, collective lands, Indigenous territories, protected areas, and property held by public entities under a special legal regime, unless that regime expressly allows it. Incorporated property would be managed or disposed of under the rules governing municipal assets. Mayors, deputy mayors, council members, municipal officials, their spouses or partners, specified relatives, and legal entities in which they hold an economic interest would be barred from acquiring it directly or indirectly.

Each municipality would maintain an updated, publicly accessible register identifying the property, its location and value, the procedure’s status, and its assigned use, subject to transparency and data protection rules. Competent authorities would oversee the relevant acts. Existing administrative remedies would apply, and a declaratory municipal agreement would exhaust the administrative route. Pending cases would generally continue under the rules in force when they began, subject to the provision protecting interested parties’ rights. The proposed law would take effect the day after promulgation. The measures would concern municipalities, owners, heirs, legal entities, property developers, and communities, including those facing uncertain title in Arraiján.