'Problem with Procasa' Real Estate

Mike Stabach (74.8.205.172) - 02/05/09 22:28

I have a problem with a Panamanian Real Estate developer called Procasa that hopefully someone can help me with. Last summer my wife and I decided to buy a condo in Panama City from Procasa over the Internet at the Kubik project in El Cangrejo. We paid Procasa via bank wire and credit card approximately $11, 500.00 and set up a payment schedule for the balance of the down payment.

In December we went to Panama for a vacation and to meet with Procasa and the lending bank Banco General. Upon arrival we drove past the Kubik construction site and immediately realized that this condo was not suited for our family. I called our Procasa sales agent, Marta Tunon and explained to her that Kubik was not what we were looking for and that we were interested in another (more expensive) Procasa project called Pine Hills in Albrook. We met Marta and toured the Pine Hills construction site and decided to switch our deposit to a condo in Phase I of Pine Hills. Marta indicated that Procasa management decided to accept our request to switch projects. We met with a Banco General rep. at the Procasa office and were told that because the Pine Hills condo was more expensive, our down payment was be increased from $50, 000.00 to $78, 000.00. We agreed to the new terms and left for our vacation to the beach. We made arrangements to sign the paperwork and open an account at Banco General before we returned to the USA at the end of the following week.

A week later, as scheduled, we contacted Procasa for our appointment to sign paperwork and open the bank account. At that time, we were informed that Banco General had made an error and that the paperwork was incorrect and that the down payment was increased to over $120, 000.00. I indicated that I could not afford to pay that much as quickly as necessary to participate in a Phase I condo. Because my wife and I really wanted to move to Pine Hills, we agreed to reserve a Phase II condo in Torre 5 (because it had the best view) which enabled us more time to pay the balance of the $120, 000.00 down payment. We were told that only units in Torre 1, 2, and 3 were available at the present time. Although we wanted Torre 5, we settled for the top floor of Torre 3 because we were very excited and really wanted a condo at Pine Hills. We specifically reserved unit number 6A in Torre 3.

We returned to the USA and then received an email from Marta Tunon that Procasa agreed to the terms we had already agreed upon for unit 6A in Torre 3. I responded that I was happy to hear that and that I was waiting for the paperwork to be sent to me. Later I then notified that unit 6A which had previously been reserved for me had actually been already sold to someone else and that I needed to settle for unit 5A on the floor below. At that point my wife and I decided that enough was enough and we did NOT agree to a 5th floor condo and that since we never intended to pay so much money anyway we requested a refund of our deposit and notification of when Procasa was going to offer the units in Torre 5. At that point Marta Tunon told me that because Banco General pre approved our loan, Procasa would NOT give us any refund just credit towards another condo. I can’t believe any Judge would allow Procasa to keep my deposit. Is there any way to pressure Procasa to refund my deposit or do I have to go through a long drawn out court process. Can anyone help me?

Comment #1 Frank Lutz (76.90.122.106) - 04/01/09 22:54

Contact this person: Nora Arosemena

Law Offices Rainelda Mata-Kelly

Suite 406-407, Tower B

Torres de las Americas

Punta Pacifica, City of Panama

At this phone number in Panama City:

Tel (+507) 380-0606 or 263-3492.

These are our lawyers there, who have helped us in our dealings.

We have had a good experience with Procasa so far. Good luck.

Frank Lutz.

Comment #2 Karina munoz (68.95.76.126) - 04/24/09 13:14

We have so much problem with PROCASA Panama city Panama, I recommend people NOT to purchase any project with this company at all. I still have a lot of prolem about my place after more tham 3 years waiting for them to finished. finally I got my aparment but nothing what I pay for, also I purchase a Store and since december I didn't received yet. ALL the resident of my project and others projectwith this company around Panama are very upset about it.

Comment #3 cwemoy (63.176.159.103) - 07/17/09 07:12

I do not think it was wise of you not to have sighted the property first before purchasing it(I believe you preferred to handle anything without being there physically). That does not mean that the real estate agents have a right to take youy round and round in circles and in the end make you run into losses.

The best way would be to consult a legal expert(and make sure you get one that is for real). You have little chance pursuing it on your own. A lot of fraud exists in buying and selling of property. Why wouldn't the notorious suspects be blacklisted?

Comment #4 Dar (167.80.246.204) - 07/17/09 10:36

I have written many pieces here in this site. The one thing I always tell everyone is never never never do anything without an attorney. You could have paid a local attorney (There are many good ones, and a few not so good) about $1500. to handle the transactions for you. Always choose an attorney that comes recommended by a fellow countryman. I'm from the U.S. and found U.S. pats living in Panama and asked for their recommendations. They will tell you who they like and how honest they are. We purchased in Boquete at Montanas de Caldera. It was a wonderful experience. We are treated very fairly and they will go out of their way to do things right. If you need assistance, call or email Jane at Montanas, they have a website, and you will be amazed at how great they are. Tell them Mike and Darlene sent you. As soon as we sell our home here in Washington state, we are on our way. Good luck. Remember, in Panama, the Locals are always right in court, that is why you do everything with a local attorney.

Comment #5 tennis (89.241.158.83) - 07/28/09 06:34

Dear Mike and all.

As far as I, AND HUNDREDS OF OTHERS are concerned Procasa are corrupt crooks. I purchased in 2005 and was told every year that I would be completing. I even had to pay an increase in purchase price due to the cement price increase of $7.500. Finally after the bad communication with the banks and they asking last minute documents Procasa cancellled my contract with no warning. the bank has signed the title deeds, I had my permits, I paid months ago the welcome package. and guess what they hold me to ransom on 'clauses' and are asking for $30K more in order for me to keep my apartment. The numbers of complaints are growing fast against Procasa. They are corrupt. We must all stand together, there has been a new consumer law passed to protect the consumer. Law 29 of 2008. in Panama, look at the website I have linked on the weblink.so many people have lost their properties with Procasa, try contacting them, impossible. they are just using us foreigners and we must stand up and fight.

Comment #6 Tennis (78.146.56.144) - 07/29/09 14:04

Hi Mike, Karina and others who have been abused by Procasa. Google 'Procasa Scams and Corruption' Please air your grievances to these sites, like complaints board and ripoffreport. Procasa should not be able to get away with it especially as the law changed last year for consumer protection.

Comment #7 procasavictim (89.243.149.97) - 07/30/09 22:40

Lawyers want all procasa victims to file lawsuits against these villians. I have lost my deposit because of these evil people making their own rules. Is this democracy Mr. President of panama

Comment #8 anonymous (74.173.32.136) - 08/05/09 08:40

I also have been a victim of Procasa. I waited more than 3 years to finalle get my condo.. When I finally did, it was not even close to what they had promised, the construction was so bad I took my brother who knows about contrcution and he wondered how could the fire department ever give them a permit to occupy. He had to change all the electricity outlets becuase either they where not even connected or they where all rusted and didn't work. He also had to change the breaker box because the one they put in was to small and the breakers where going off all the time, they did such a terrible job everywhere we had to fix a lot of things or just get new ones. i am a Panamanian living in the states and I was ashamed of the way they treated me as a foreigner and others too. There are many respectful real estates companies in Panama but PROCASA is not one of then, I plane to file a complaint with the Autorididad al cliente they are just waiting to find bad things in these businesses because the more they find wrong the more money they get.

Comment #9 Ana Marin (82.9.167.15) - 10/15/09 12:22

Procasa is the worse company. I know 3 others who they stole money from.I wish Isaac Mizrachi and all his chickens to go to jail. We should form an union to destroy them

Comment #10 KELSO (68.103.245.172) - 10/15/09 14:58

This amazing i heard a lot of problems with this Company called Procasa in Panama. But Real States in Panama are suck they are lyer.

Comment #11 KELSO (68.103.245.172) - 10/15/09 14:58

This amazing i heard a lot of problems with this Company called Procasa in Panama. But Real States in Panama are suck they are lyer.

Comment #12 john (209.90.140.39) - 10/21/09 17:25

"ripoff in panama"

I think this is a normal thing in panama lots of people are getting ripoff and most people are outsider, American Canadian and people from Europe I am one of those victims too. I bought three property in panama

since 2006 a condo in city the completion date 2006 one year after in 2007 they send me letter saying my apt is ready, but there is extra charges for things added on when i ask them to show me they say that was not in the plan so i ask them how much more increase the $17, 000 more plus $3000 in legal charges i told them i will not pay the $17, 000 but i will pay legal charges, they sent a letter saying we no longer doing business with you until you pay the full amount nothing like this was in my contract but it seems they are getting away with it, because laws in panama are not working for people so these developer are getting away with murder because the can pay off everyone. so to all people do not buy property in panama because you will get ripoff, and who so ever read this and if you are in the same problems as me take your money and run far awaaay from panama get out as soon as possible and that no joke

Comment #13 Judd M. Mills (68.50.111.242) - 12/19/09 02:13

"Buyer From Procasa"

I attempted to purchase a condo from Procasa in Panama City at the Marqais. I put down a $5, 000 down payment, but could not obtain financing, since credit has dried up in Panama. I have requested my deposit refunded but the keep making excuses and refuse to give it back. These people are crooks pure and simple and no American or anyone else should buy anything from them. In fact, I am thinking that Panama is not a good place for Americans to invest. In reality it is a banana republic trying to act like they have rule of law. You might as well invest in Russia and get screwed with the big boys.

Comment #14 Anonymous (64.60.77.50) - 01/18/10 18:04

"Procasa Victim"

We also attempted to purchase a condo from Procasa (Concept). After complying with all the requirements and deposits and waiting nearly two years when the building was supposed to be turned over after completion we were notified that an error had occurred and that our unit had actually been sold to someone else. It was obvious that they had found another buyer for our unit and they were going to sell it for a lot more than what they had agreed to sell to us. They offered us a different unit in a lower floor with no view since it was totally blocked by another building. We refused and demanded our money back plus interest. It took some doing and a lot of hassle but in the end we were able to get our money back after wasting two years waiting for this condo to be built. In the meantime prices had skyrocketed elsewhere. Very unscrupulous company. Don't do business with them!!

Comment #15 ManOnFire (201.224.133.175) - 02/28/10 02:11

"United"

Hello M. Stabach,

Know that you're not alone and I firmly believe that if we take actions as a group, we might get better and faster results. Do you know of any other people buying on Pine Hills that we could contact?

I am in Panama, I speak spanish and I've been trying to find other people dealing with this same situation (regarding the same project, Pine Hills). Is there anything you have already done in that aspect? If so, I'm interested to join the battle!

Good luck everyone and don't despair. Whatever these people at Procasa think, THERE ARE LAWS in Panama.

Regards

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