Axiological Management for Addressing Unfair Clauses in Real Estate Contracts to Promote Consumer Protection Governance in Panama

Abstract

Objective: To analyze unfair terms in residential real estate purchase agreements in Panama. Methodology: This study adopted a qualitative, documentary-legal, and descriptive-exploratory approach with a non-experimental field design. It was based on a comprehensive review of legal doctrine, the applicable regulatory framework, relevant Panamanian case law, and administrative statistics from the Consumer Protection and Competition Defense Authority (ACODECO). Results: The most frequently identified unfair contractual practices in the analyzed body of case law include the total forfeiture of amounts paid by the purchaser, limitations on the builder’s ten-year structural warranty, and the mandatory submission of disputes to arbitration procedures other than those established by law. These patterns are consistent with the categories involving the highest monetary claims filed before ACODECO. Conclusions: Nearly two decades after its enactment, Law No. 45 of 2007 provides a solid legal and judicial framework for protecting consumers against unfair terms in real estate contracts. However, its preventive effectiveness still depends on greater consumer awareness and on reforms that strengthen ex ante control mechanisms, in line with regional experiences such as Mexico’s public registry of standard-form contracts and Colombia’s regulatory guidelines on new housing issued by the Superintendence of Industry and Commerce.