Buying Real Estate in the USA

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BUYING REAL ESTATE IN THE USA

Presented by:

The Law Offices of Gene R. Moses P. S. Cross Border, Business and Corporate Attorney of Barkley Law Group, 2200 Rimland Drive, Suite 115, Bellingham, Washington 98226. Telephone: 360-676-7428; gene@genemoses.net; http://www.genemoses.net.

Mallina Wilson, CIPS, TRC, RSPS, AHWD, IMSD, ABR; FIABCI, AREAA & AREA Member;

2011 Washington State International Real Estate Council Vice Chair; 2012 Washington State Global Business and Alliances Council Chair; Keller Williams Western Realty, 2211 Rimland Drive, Suite 124, Bellingham, Washington 98226. Cell Telephone: 360-220-7315. Office Telephone: 360-738-7070, mallina@mallinawilson.com, http:///mallinarealestate.com.

BUYING REAL ESTATE IN THE USA

A primer designed to help Canadians understand the legal and practical basics of purchasing real property in the USA.

  1. Don’t believe everything you read! Books purporting to guide Canadians in the proper way of purchasing and investing in US real estate are wildly popular and notoriously wrong.

  2. Beware the Bundled Professionals! We have experienced considerable difficulties, primarily in Arizona, with groups marketing “packaged" deals to Canadians. “Our group can locate the real property, arrange the financing, provide you with legal and tax advice."

  3. Defining the Buyer. Leave yourself the option to buy the real property individually, in a corporation, in a partnership or other entity by signing the Earnest Money Agreement/Purchase and Sale agreement as follows: John Jones or an entity to be formed by John Jones.

  4. Consult your tax professionals. Consult with your Chartered Accountant or a US Certified Public Accountant to learn the tax ramifications for Canadians owning real property in the USA. Investigate how many days per year you can enjoy your property without being taxed on your worldwide income. Learn how different laws apply when selling your property to another foreign national vs. a US Citizen. Learn how upcoming inheritance tax changes may affect your future transfer of real property to your family. Ask your realtor to recommend a US CPA who does cross border transactions.

  5. Select the appropriate entity. Learn the difference between a general partnership (GP), a Limited Partnership (LP), a Limited Liability Partnership (LLP), a Limited Liability Limited Partnership (LLLP) and a corporation.

  6. Realize the benefits of a properly structured legal entity. There are significant hazards to the "Do It Yourself" approach. Long term, it is well worth investing in experienced legal counsel.

  7. What is a Title Insurance Company?“Conveyancing" is done drastically different in the USA. Learn (1) what a Title Insurance Company does, (2) what a “Preliminary Commitment for Title Insurance," is (3) what Condominium or Homeowner Association Bylaws are and why you should read them.

  8. Locate a “Qualified" Realtor. All realtors are not equal. State real estate laws don’t teach realtors international transactions. Use a realtor who has been educated in foreign national transactions. Use a Realtor who holds the National Association of Realtors Certified International Property Specialist Designation (CIPS) to best serve you. They have the tools to best serve you in your purchase and in the sale of your property which can save you thousands of dollars by following federal guidelines frequently overlooked by other realtors. CIPS Realtors also network with national and international colleagues who shop a larger geographic area.

  9. Investigate Medical Coverage. Learn how some medical plans will afford you better rates when you own property internationally!

  10. Property Management; Self Managed versus Professional Management. Learn how municipal, state and federal laws vary for multi-tenant properties managed by foreign national individuals as opposed to professional property managers.

Presented courtesy of: TheLaw Offices of Gene R. Moses P. S.Cross Border, Business and Corporate Attorney, Barkley Law Group, 2200 Rimland Drive, Suite 115, Bellingham, Washington 98226. Telephone: 360-676-7428, http://www.genemoses.net and

Mallina Wilson, CIPS, TRC, RSPS, AHWD, IMSD, ABR; FIABCI, AREAA & AREA Member;

2011 Washington State International Real Estate Council Vice Chair; 2012 Washington State Global Business and Alliances Council Chair; Keller Williams Western Realty, 2211 Rimland Drive, Suite 124, Bellingham, Washington 98226. Cell Telephone: 360-220-7315. Office Telephone: 360-738-7070, mallina@mallinawilson.com, http:///mallinarealestate.com.

© 2012 The Law Offices of Gene R. Moses P. S.

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