Legal Issues That Could Stall A Sale!
When you're looking to buy a new home, there are unforeseen challenges that can arise. Be sure to keep an eye out....
Issue #1: Foreign investment and real property tax act! This means a buyer who purchases U.S. real estate from a foreign seller is required to withhold and pay to the Internal Revenue Service at closing a percentage of the gross sale price. This amount is not the tax itself, it is a deposit to be applied against the sellers actual tax bill when the seller files a federal income tax return. FIRPTA presents a few issues for seller, especially in the sale of a highly leveraged property where the sellers may not have enough profit from the sale to satisfy the withholding and any loans secures by the property.
Issue #2: Power of attorney! In many cases International owners of Florida real estate cannot be presented during the entire sales process. To keep a transaction moving, they might wish to sign a power of attorney.
Issue #3: Visas! Another challenge for international investors is immigration status. First of all, some visas allow them to stay on the United States for only a short period of time. For example tourism visas issued to residents
of many Asian countries allow only a six-month stay. This present
logistical challenges if the closing is scheduled near the end of their stay.
To avoid these time consuming issues and get into your new home call Mark and Jenn! (386)-566-8091