Buying properties in the U.S.

Buying property in the US is a simple and straight-forward process. Here's how it works in a nut-shell -- but call anytime and we can discuss this in greater depth.

• Find a property of interest.
• Make an offer with a refundable earnest deposit.
• If a sale is successfully negotiated, open escrow with a third-party escrow company which will also issue a title policy to insure the entire transaction.
• Have the property inspected, receive and review all disclosures. If inspections are acceptable to buyer, the title company prepares documents for recording and paperwork with dollar amounts due to and from buyer, seller banks, and any other parties to the transaction.
• Deed is recorded, monies released, and keys are conveyed to the new property owner.
• Buyer pays no Realtor fees, but does customarily pay 1/2 the escrow and recording fees, the building and termite inspections, and any loan fees.
• Financing is no problem, and you can get good rates if the purchase is intended to be a second home. Once the property is yours, you can do with it whatever you like. Loans for investment properties are generally a bit more costly and require a larger down-payment. The one caveat is that US lenders do not recognize some out of the country credit rating bureaus, so that can create more of a headache securing the best rates. The lender may also want a 30% down payment.

The interplay between foreign and American estate laws may vary from buyer to buyer depending on financial circumstances. It is always best to consult a your own tax/estate attorney to figure out the best way to take title to your property.

For buyers and investors who want to rent their investment some or all of the year, we do have management and "seasonal" rental management companies we can refer. Seasonal rentals are a popular way to maximize profit by charging a higher rate for peak season.  

The final thing you need to know is that when you eventually sell, the US government will temporarily hold back 10% of your proceeds to make sure no fines, judgments, or back taxes are due before the money exits the country. If there is nothing owed, the entire amount will be returned to the seller.

We hope this primer is helpful to you. Feel free to forward this to anyone else who may have an interest in this subject.