THIS ARTICLE CREATED IN ORDER TO HELP FOREIGN BUYERS UNDERSTAND THE PROCESS OF ACQUIRING REAL ESTATE IN U.S.

FOREIGN BUYERS BOOM  IN MIAMI .For the past few years its been a trend in numbers of foreign buyers acquiring Miami Real Estate .More than 65% of transactions are performed with buyers from overseas. Among the most popular countries are South America, Canada and Russia. Miami draws millions of people from around the world to live and invest in real estate. Wonderful climate all year around,stunning white sand beaches,world class shopping and entertainment makes Miami among the top 10 best destinations to live and invest in.

For foreign buyers the process of acquiring  Real Estate in Miami is not that much different than for U.S. citizens. It is  crucial  though that buyers from overseas understand the whole process of purchasing real estate in US. The basic practices associated with it might greatly differ from ones in their home country.

PREPARATION  PROCESS OF BUYING REAL ESTATE.

Step #1. Choosing a Realtor.

First things first! You need to find a knowledgeable Realtor who specializes in the area and has experience dealing with international buyers. Your Realtor will be able to guide you through a complex process seamlessly, assure you will have the support of attorneys and accountants to protect your interests. Another great thing about hiring a Realtor is that for buyers Realtor services are absolutely FREE and still you have support and loyalty at no cost to you. In US all fees associated with commission for property sale are handled by the seller.

Step #2. Hiring an Attorney and an Accountant

It is very important to have an attorney to protect legal side of the transaction. Lawyers will review the contracts and advice buyers whats best for their interests. Accountant will advise future buyers about tax liabilities and requirements .

Step#3. Register a business in Florida.

There are several ways of acquiring real estate one is as an individual and the other is through a registered business known as a corporation or LLC. For foreign buyers it is highly recommended to purchase a property as a business which will minimize the tax liabilities in the future resale.

Step#4. Opening a bank account in American bank.

The funds can be transferred to  an escrow account if the full purchase is made in cash or a bank account is necessary is the buyer is applying for a mortgage . In order to open a bank account you need to be physically present in US . The whole process only takes about 30 min with proper documentation.

Mortgage rates are currently all time low and foreign buyers can get  15 or 30 year loan. The required down payments are  40-50 % For more information about obtaining financing read “Obtaining condo financing in Miami”

PROPERTY SEARCH AND OFFER

• After selecting a property with your Realtor, you are ready to present the offer. The offer should be accompanied by the earnest money deposit, usually 1-2% of the purchase price. This deposit is help in the escrow account of your attorney or broker and can be easily recovered if the deal falls through for a reason not dependent on the buyer. Any unauthorized use of the escrow money is punished by Law, followed by revocation of   licence and prosecution.

• As soon as the agreement between parties has been reached, and the contract is fully executed, it is sent along  with building- by- laws to buyers attorney for review. This vigilance ensures that buyers understand their obligations as well as risks associated with the purchase.

• After reviewing condo-by-laws, within  5-7 days after the contract has been executed, the second deposit needs to be wired. Its usually 10% of the purchase price.

• Buyer has 15 days after the date of the contract execution to inspect the property with the help of professional inspectors. If there`s a crucial issue that comes up after inspection of the property, buyer can cancel the contract. At the same time buyer has to submit an application  for condo or home association approval. Both inspection period and condo approval process takes around 2 weeks so its better to do it right away. If the purchase of the property is a subject to mortgage approval all necessary documentation has to be submitted to the bank and the average time for the bank approval takes up to 30 days so the closing dates should be scheduled accordingly.

• It is highly recommended that the buyers do a final walk through on the day before closing.

PREPARATION FOR CLOSING

1.Once the inspection come out satisfactory, the condo or home association approval is obtained ( if its a mortgage contingency then mortgage approval along with the paperwork mentioned above), the title comes clean -closing takes place. The closing itself usually takes place in attorney`s  or title company`s office. The buyer doesn’t have to be present if he lives in another country. Documents can be sent overnight courier services to obtain original signatures for county or resort to Power Of Attorney.Sometimes electronic signatures are accepted by the title company.

2 At closing or the day before closing the outstanding purchase amount is transferred to the escrow account, final settlement is signed by both parties . Attorney for the buyers  as well as the seller, agents, bank representative are all present at the same table (exceptions apply). Finally the buyer receives a new title, title insurance and of course keys to their new Miami residence.

This is just a brief outline of the typical transaction.If you have any questions or concern about anything related to transaction process please don’t hesitate to contact us.

We specialize in helping International Buyers acquire Real Estate in Miami .We speak English ,Russian  Spanish and Portuguese.We have a team of highly professional title attorneys, bank loan officers,insurance companies and many other professional affiliates available to  facilitate smooth and successful closing.

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