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Information for Buyers and Sellers from Overseas
There are some special tax implications for
foreign owners of property in the U.S. The most important is that all property sales by foreign nationals are subject to a 10% withholding at
closing unless the seller and the Realtor have planned for this problem.
Similar
rules apply to rental income received.
The
Sanibel Property Team recommends that all foreign nationals who are buying or
selling property in the USA consult with US tax experts. We can provide you with
a list of registered tax experts who can assist you, some of whom have
particular expertise with investors from overseas.
Here is some other information
that foreign buyers and sellers might want to know:
Role of U.S. Realtors
Realtors in the United States generally take a more active part in the real
estate transaction. Here are some of the things you can expect your U.S. Realtor
to do for you.
While you’re searching
1. Provide you with updates on all the properties on the market that fit your
criteria. U.S. Realtors belong to multiple listing services and can therefore
show you any property that is for sale, no matter which realtor has listed it.
2. Accompany you to look at all the properties that you want to see and provide
you with full information including the number of square feet, the amount of
property taxes and any special features or problems with the property.
When you’ve found a property you like
1. Give you accurate and complete information about sales of all similar
properties. This information should include the price that it was listed for,
the price that it sold for, the date that it sold and the number of days it was
on the market.
2. Provide you with any additional information that can be provided by the
listing agent such as improvements to the property, the age of appliances, the
age of the roof, water heaters, air conditioners, etc, the cost of insurance on
the building.
If
you decide to make an offer
1. Suggest a price for which you might reasonably expect to buy the property.
Your realtor should provide information about the average difference between the
price asked and the price sold and a comparative market analysis showing the
sold prices of similar properties.
2. Put together an agreement to purchase based on the price you are offering
clearly detailing what is included in the property, financing arrangements and
closing dates.
3. Include all necessary addenda and riders such as condominium riders and
special clauses.
4. Clearly explain provisions in the purchase agreement.
5. Present your offer to the listing agent, explaining the reason for the
offered price and all other provisions of the contract.
6. Present any counter offers to you making sure you understand all terms.
7. Present any counter offers from you to the listing agent.
When your offer is accepted
1. Provide you with copies of the contract and other riders signed by the
buyer(s) and seller(s).
2. Obtain the homeowners or condominium association documents for you and
explain any special provisions or assessments.
3. Obtain consent to transfer form from the management company representing the
condo association.
4. Provide you with instructions for wiring funds for the additional deposit.
5. Provide information regarding mortgage brokers and other financing
alternatives.
Helping with financing, inspections, repairs and closing arrangements
1. Send signed contract agreement, addenda and riders to finance company or
mortgage broker.
2. Provide you with a list of home inspectors, if desired.
3. Arrange home inspection and any other inspections.
4. Attend home and other inspections and report to you on items that need repair
or replacement.
5. Inform the listing agent of all repairs and replacements indicated by the
home inspectors.
6. Provide the title company or lawyer closing the transaction with signed
contract agreement and all addenda and riders.
Before closing
1. Recommend insurance brokers.
2. Provide you with telephone numbers and websites to transfer all utilities.
3. Give you wiring or other instructions for the funds for closing.
At closing
1. Give the title company a check for the deposits paid by you.
2. Obtain all keys to the property and bring them to the title company for you.
After you’ve bought the
property
1. Recommend builders or handymen for any remodeling projects
2. Provide information about community resources generally (schools, banks,
organizations, activities.)
The Sanibel Property Team at
www.SanibelProperty.com
will strive to make your real estate purchase the easiest and most pleasant
possible. Our customers say we even make it fun!
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