Preliminary Registration of Title/Mortgage
The procedures for the registration of Preliminary Registration of Mortgage and Title Deeds are straightforward so that the whole process can be expeditiously completed. Preliminary Registration may be requested at Panama Consular Offices abroad. An appointment must be made for this purpose.
The procedure takes only one business day. Provisions have been made to allow the preliminary registration of mortgage and title deeds after working hours. For this purpose the interested party must arrange an appointment at least 2 days in advance. The ship owner can be assured by the acceptance by the United State, Far Eastern and European banks of the Panamanian mortgage, providing satisfactory security. Hence the Panamanian Ship Mortgage, once registered, grants a right in rem to the mortgagee. The encumbrance follows the ship even when sold. The mortgagee thus has a right to pursue, attach or have the ship sold in order to collect his credit, with preference over the creditors of lesser standing.