Real Estate Law: Can Foreigners Buy Real Estate In the US?
Since the real estate market in the United States is starting to recover, investors from foreign countries are wondering if they can buy properties with the intent of either selling it for profit or to stay there in the near future. Plenty of people are looking for information on buying real estate property in the US as well as the procedures involved.
While most other countries in the world only allow their own citizens to own properties within their borders, the United States sells their real estate the same way they sell other things.
However, homeowners associations in the US and other community organizations in the country mandate that those who are buying a property in their neighbourhood automatically becomes a member of the association and has to abide by the association’s rules.
Due to this challenge, some states have allowed community organizations to choose who can buy the properties in their areas so that they don’t have to deal with problems of absentee owners not being able to attend to the association’s requirements. Whichever the case, it is best to consult a real estate lawyer who can provide more information about the matter if you want to purchase property in the US.
Is it possible to obtain financing?
While it is possible for a foreign buyer to purchase real estate property through financing, you can expect to see higher rate of interests and even a higher purchase price. These challenges can be attributed to the buyer’s higher risk of not being able to pay and the difficult legal process involved since their assets may not even be touched. A buyer who is located in the same state is easier to track and is also subject to the laws of the state.
During the closing of transaction
When the deal is closed, the new owner is required to travel and handle all the real estate buying procedures. Fortunately, “Power of Attorney” can be shown to authorize an agent living in the US to handle all the necessary arrangements without the need for the new owner to physically be in the country during the closing of the transaction.
The payment of real estate taxes can be complicated with foreign nationals since there may be tax laws from other country that may apply to the newly purchased real estate property. Different countries have different tax treaties than the US so make sure you have somebody trustworthy and dependable in the US to deal with the tax issues in your country and in the US.
There are various other matters that need to be considered when closing a real estate property in the US.
The bottom line is, you can purchase land in the US but you need to make sure to work with somebody who understands the procedures and the real estate laws that apply.
For more information, consult a local real estate lawyer. They have knowledge and expertise directly related to this matter and can provide the legal advice and information you need to know when buying real estate in the US.