June 21st, 2024 2:15 PM by Linda Holley
I continue to grow my cross-border real estate business as a Certified International Property Specialist (CIPS). Having worked with both Canadian home sellers and buyers, I've learned much about legal compliance, title insurance, the closing process, and financing.
First, international buyers and sellers MUST work with an accountant and an attorney to understand property laws, tax implications, visa requirements, and other relevant regulations that will impact the transaction. When disposing of a property, FIRPTA withholding rates impact the transaction. This preliminary withholding is a pre-payment towards any potential taxes that may arise from the sale of the property.
In US, title insurance is typically required, but is less common in Canada.
Closing timeline: In Canada, a real estate closing can occur within two weeks of contract. In the US, our timeline is 30-60 days. This may come as a surprise to both Canadian home buyers and Canadian home sellers.
Financing. mortgages, terms, and interest rates may vary between the two countries. Credit scores affect eligibility for financing in the US vs. getting a mortgage in Canada. Buying and selling is a complicated process with tax rates, exemptions, and assessments as relates to property taxes, capital gains taxes, and foreign buyer taxes.
It's vitally important for global buyers and sellers to work with an experienced team of professionals when buying and selling homes in the US.*
Linda Holley, Realtor, GRI, SRES, CIPS, Fine Properties, Sarasota, FL 941-914-4914 LindaHRealtor.com
*Article provided by Florida Realtor magazine July 2024, "Set Expectations When Selling Cross Border" by Sharon Von Schoenberg.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.