Foreign Buyer Requirements For US Properties

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We are looking to expand our pool of buyers to the EU where the dollar is weak, the euro is strong and buying property in this market would be a good move against inflation and a way for foreign investors to hedge their money.



Any idea of where to look for requirements etc. as far as bringing the necessary money into the US and any other things that one should be aware of?



There is a realtor CIPS designation but it costs thousands and I am not sure if it will address all of the issues that I am concerned about..
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Comments(9)

  • Stockpro995th December, 2007

    Thanks,

    I was aware of the 10% IRS mandated witholding and getting around that would be nice.

    I know that there are taxes due for profits on property purchased. Any idea what they would be for a foreign buyer? is it the same capital gains that we have??
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  • cjmazur5th December, 2007

    http://www.irs.gov/individuals/article/0,,id=120219,00.html

    May help.

  • Stockpro997th December, 2007

    Sue your Broker, in many states that is the only person that you can sue regarding a commission..

    I would talk to an attorney and see what options are available in your state.

    This is why I favor 100% Brokers (because I am one too!)

    YOu can take the money saved on commissions and get good legal counsel. IF it were our brokerage we would have sued in our mutual behalf (long ago) before it went into foreclosure.

    The problem with the property now is "where are they coming up with the 65K to pay you?". If it goes to foreclosure then your junior lien will disappear along with all the other ones.

    At a minimum I would take them to small claims court for the max allowed there and get a judgement against them (but you may not collect there either).

    This is why your broker at this point is probably not enthused about spending money for an uncollectable debt.

    Live and learn,



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  • cjmazur7th December, 2007

    can a lis pen or a mechanics lien be used?

  • ypochris7th December, 2007

    Mechanics lien is only for materials and labor used for physical improvements to the property. To file a lis pendens you have to file a lawsuit first.

    Chris

  • RickP7th December, 2007

    Go talk to an attorney if your commission is in writing per a contract, you should be able to go to the court and get a judgement against the individual. If you have nothing in writing, your sol. Does your broker let you review closing statements? Always look at the closing statements prior to closing, I know this and was just taken for several thousand dollars two weeks ago on a percentage issue, should have been 3%, got 2% and nothing in writing.

  • Birddog17th December, 2007

    Ya, I have it in writing, 5% of the sale price, which was 1,396,000 or so. problem is there was no HUD statement prior to closing, because there was just an assumption of the note and a quit claim deed.

  • Birddog17th December, 2007

    even a lis pend can be wiped out by a foreclosure tho

  • bargain767th December, 2007

    ANYTHING recorded after the Lis pendens is recorded is foreclosed out if the property goes to foreclosure sale.

    If the LP has not yet been recorded, a memorandum of agreement can be recorded to cloud the title.... but you have waited maybe too long, What are the laws in your state?
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