Real Property Rights and the Extinction of Ownership in Panama

Diego Ospina Serna

Hatched by Diego Ospina Serna

Oct 06, 2023

4 min read

0

Real Property Rights and the Extinction of Ownership in Panama

Introduction:

Property rights are an essential aspect of any legal system. In civil law, the Code defines property as the combination of four faculties: use, enjoyment, disposition, and vindication. However, these faculties are not the only ones that a property owner possesses; they represent the potential rights that can be exercised. It is important to note that all legal relationships are between two or more individuals and not between individuals and goods. The relationships themselves may have different objects, such as goods or behaviors. Within the realm of property rights, there are three main categories of subjective rights: personality rights, family rights, and patrimonial rights. Patrimonial rights, which have an economic content, include real rights.

Real Rights vs. Obligational Rights:

The distinction between real rights and obligational rights dates back to Roman law. Real rights directly pertain to things, imbuing or flooding the object itself. This establishes a direct relationship between the rights holder and the object of the right. On the other hand, obligational rights do not create a direct relationship with the property. For example, in a loan agreement, the creditor, as the rights holder, cannot directly appropriate the money owed. Instead, they have a right against the debtor to fulfill their obligation. The creditor accesses the object of the obligation through the debtor. Unlike real rights, obligational rights involve three elements: the creditor, the debtor, and the obligation that binds the debtor to the creditor.

The Extinction of Ownership in Panama:

The proposed bill, Project Law 625 of 2021, introduces the concept of the extinction of ownership in Panama. This legal initiative, presented by the Ministry of Government and Justice to the National Assembly, defines the extinction of ownership as a patrimonial consequence of illicit activities. It states that it involves the loss of any right over property in favor of the State when such property has an illicit origin or purpose.

Connecting the Concepts:

Although seemingly unrelated, the concepts of real property rights and the extinction of ownership share common ground. Both revolve around the legal framework governing property and its rights. Real property rights affirm the owner's control and entitlements over their property, while the extinction of ownership seeks to strip individuals of their rights and transfer them to the State due to illicit activities.

Unique Insights:

It is important to recognize the potential impact of the extinction of ownership on property rights. While the intent may be to combat illicit activities, there is a risk of infringing upon the principle of legal certainty. Property rights serve as a foundation for economic development and individual autonomy. Striking a balance between addressing illicit activities and protecting property rights is crucial.

Actionable Advice:

  • 1. Understand the nuances of property rights: To navigate the complexities of property rights, individuals should familiarize themselves with the legal framework and seek professional advice when necessary. This will help protect their rights and ensure compliance with applicable laws.
  • 2. Stay informed about legislative developments: Changes in legislation, such as the proposed extinction of ownership, can have significant implications. Stay updated on legal developments and actively engage in the legislative process to voice concerns or propose alternative solutions.
  • 3. Promote transparency and accountability: To combat illicit activities effectively, it is essential to promote transparency and accountability in all aspects of society. Encouraging government agencies to adopt transparent practices and implementing effective anti-corruption measures can help prevent the need for extreme measures such as the extinction of ownership.

Conclusion:

Property rights play a vital role in any legal system, granting individuals control and entitlements over their assets. The concepts of real property rights and the extinction of ownership, although distinct, intersect in their focus on property and its legal framework. While the proposed extinction of ownership aims to combat illicit activities, it is crucial to strike a balance between addressing these issues and protecting property rights. By understanding the nuances of property rights, staying informed about legislative developments, and promoting transparency and accountability, individuals can navigate these complex legal concepts and safeguard their property rights.

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