Marion is a licensed CIPS
(certified international property specialist)
We will be able to guide you through the process from selecting the right property, writing a contract to a successful closing. The Real Estate buying process is different in the US then in most other foreign countries and we understand the special needs of an international buyer.
Some differences between US and
Foreign Real Estate
In the Unites States all property listings are made accessible through a multiple listing service (MLS). All Realtors have access to the MLS and are cooperating with each other and share the commissions, this will give you the advantage to have someone representing you as the buyer or seller and look out for your best interest. Whether you are looking for an oceanfront condo, waterfront home or an investment or bank owned property, 99% of all available listings can be found on the MLS.
All about coordinating
This service is available to the foreign buyer and will safe you lot’s of time and money. In the US your Realtor is writing the offer / contract and is coordinating the transaction in the best interest of the client. To have a successful closing and to facilitate the extensive transaction for you, you would need a professional and experienced and well connected real estate agent. Buyers or Sellers representation is available for you.
In the United States the commission on residential properties is always paid by the seller on closing. The commission is always included in the sales price. There are no additional Taxes on closing that needs to be paid by the buyer. Only on some commercial properties the buyer has to pay the commissions or part of it.
Closing
The closing is the final step of the property purchase. Now all the major work has been done and the closing is the summary of it. The process consists of a close cooperation between the attorney (closing agent) or title company, the mortgage broker if applicable, the Realtor and Insurance Broker.
Appraisal and Inspections
The title work is done, the lien search and/or condo approval has been obtained if applicable, the appraisal and inspections have been done and the transaction is now ready to close. The buyer does not have to be physically present in the US for the closing as long as there is a power of attorney in place.
How to take title?
There are different options available. You can purchase and can take title as a Florida Corporation, an LLC, in your personal name or as a Trust.
Purchase goal
Marion will refer you to the right attorney and accountant to find the solution that suits your situation or your purchase goal.
Financing
Most of the foreign investors choose to pay cash vs financing. This is the easiest and least complicated and less expensive option available. As well a better negotiating power.
Foreign buyers
If you choose to obtain a mortgage, there are many financing options available to foreign buyers.
Please keep in mind that the requirements and terms are different then in your own country,
loans to foreign nationals might require a higher down payment, mandatory escrow deposits and reserve payments.
We can refer you to the right loan officer specializing in foreign national loan programs to find the best loan package for you.
Please e-mail us for our “financing guide for foreigners”
Due Diligence
The phrase of “due diligence” refers to the act of using adequate preparation before entering a sale.
purchase and sale contract
In the US the buyer secures the property first with a purchase and sale contract and then has the opportunity with the “due diligence period clause” to cancel the contract without any reasons or if the inspections fail in the buyers sole discretion. The due diligence period is in general 5-15 days in residential and in commercial around 45 days. Some examples of due diligence include:
Taxation in Florida
Tax liability will vary greatly depending on any tax treaties your home country may hold with the US.
Specialists to anticipate
Consulting a local tax advisor as well as an experienced accountant will be necessary to prepare you for the tax-related responsibilities you will face as a result of your real estate purchase.
Dynamic Realty Group (DRG) can refer you to highly knowledgeable specialists to anticipate any property-related tax costs. Many US tax policies are extremely friendly towards foreign investors, offering them special rates and deductions.