BUYING GUIDE FLORIDA
fi nancing in order. Generally, the closing date is 30 days from the signing of the contract. However, this can vary, and both parties must agree the fi nal closing date. 7. T e buyer and seller appoint a settlement company to complete the transaction. T e buyer pays the balance owing and both parties sign all the fi nal documents. A buyer would be wise to take out title insurance before the closing date, which will protect him should a situation crop up where the title to the underlying real estate ends up being clouded. A clouded title is one where another person or entity ends up having an interest in the property that for some reason was undiscovered. Mistakes can occur and liens held against the property, so it is sensible to protect yourself against any expenses or loss you could experience if there is a problem with the title. 8. T e transfer of ownership is registered with the local authority aſt er completion. Generally, the local authority assesses property taxes on your purchase. T is property tax (about 1-1.5 per cent of the purchase price annually) is included in the closing costs. If you are buying on a development, add in homeowner association dues. Americans do not always use a solicitor (or lawyer) when buying a house, but it is recommended you hire someone to oversee the paperwork and represent your interests. For the sake of a few hundred pounds, it will give you peace of mind. You might even give your solicitor power of attorney to act on your behalf and speed up the process, particularly if you are thousands of miles away in the UK.
Taxes As a foreign buyer, it’s vital you understand the tax implications of owning a second home in Florida. Foreign purchasers, just like US citizens, will be subject to various state and county taxes at the time of purchase, annual taxes based on the value of the property, and on any value gains made when the property’s sold. Foreign investment in the Real Property
Tax Act of 1980 (FIRPTA) requires that an amount equal to 10 per cent of the selling price is withheld from a foreign seller of real estate. T is is held to cover potential taxes on the profi t, but the 10 per cent withheld can be far higher than the actual amount of tax due. T e foreign seller then needs to fi le for a tax refund to collect the excess amount of tax withheld. A foreign purchaser is wise to talk to a tax attorney or accountant prior to selling a property. Foreign buyers are also eligible to defer
the tax of gains when they sell an investment property held over for one year, and then purchase another within a specifi c timeframe. T is permits profi t from the property sold to be deferred from taxes until a future date when the new property’s eventually sold. Specifi c rules need to be followed, but there are specialist tax and
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aplaceinthesun.com
7 tips for choosing the best agent By Patricia Tan, Sarasota based agent (
yourglobalagent.com)
Shopping for a home in Florida may be easier than you think. All homes that are for sale are listed in a central database called the Multiple Listing System (MLS). Any licensed agent has access to this system and can show you any home listed there. This means you can work with only one agent and see all houses for sale in the area. So how do you choose the best agent for you? “Interview” several agents, either by email, phone or face-to-face when you
Visas
Most people can visit the USA for up to 90 days without a visa under the Visa Waiver Program. For longer stays or split residence, a B-2 visa
is still a tourist visa, but it allows you stay in America for up to six months. This would suit a retiree, who wants to spend half his time in the UK and half in Florida. You can spend more time if you break up your visits, but you must not abuse the system, or your visa will be revoked. If you’re working in Florida, you can apply for an L or H visa. Normally, your employer will go through the process of getting the right visa for you.
Getting a visa that will allow you to operate a business in Florida is more complicated. There’s a great deal of documentation to be completed, so you might want to employ a specialist who can help with the application process and advise you on your chance of success.
accounting companies that can help you coordinate these exchanges. If you rent your property out you will
need to fi le a federal US income tax return. You’ll have to declare your rental income, but you can deduct expenses such as maintenance, utilities and mortgage interest. Since Florida doesn’t have state income tax, only the federal government will tax income from the property.
Healthcare Florida has a number of excellent hospitals and health centres, but free healthcare is not usually available. You will need to take out medical insurance, which can be expensive, unless you have an employer who will cover it for you. Emergency treatment is available at certain hospitals, even if you can’t pay for it. §
Useful websites
National Association of Realtors (NAR):
www.realtor.org Property price index:
www.zillow.com Miami Association of Realtors:
www.miamire.com Florida Association of Realtors: www.fl
oridarealtors.org
are at an overseas property show, or their offi ce in Florida. You should not be embarrassed or feel awkward about asking questions. This is common practice in Florida, and the agent will respect you for being open about it. Here are seven questions you should ask.
Are you just a real estate agent or a Realtor®? Only members of the National Association of Realtors® may use the term Realtor®. This is an important diff erentiation, as Realtors are bound by a Code of Ethics over and above the minimum requirements of the Florida real estate licensing law. Generally the Code of Ethics requires a Realtor to: Be loyal to clients, Have a legal duty to clients, Cooperate with competitors, Be truthful in statements and advertising, Not interfere in exclusive relationships that other REALTORS® have with their clients
How long have you been in the business, and is this your full time job? This is a good indication of the agent’s experience and dedication to their profession. Generally, agents who have made real estate their full time career are more likely to be knowledgeable about the latest laws, standards of practice, trends in the market and how they may aff ect you as a buyer or seller.
Which NAR designations do you hold? The answer to this question is an indication of how seriously the agent takes their personal education and responsibility to be aware of the best ways to serve their clients. The most important designation for an overseas buyer to look for is the CIPS – Certifi ed International Property Specialist. This indicates that the agent has undergone a structured training course, run by the National Association of Realtors®; aimed at providing tools, knowledge and skills needed to work with an international buyer or seller of real estate. To achieve the designation, Realtors® must pass a written test, demonstrate experience in the global market and pay an annual subscription which ensures they receive up-to-date information on new regulations and trends.
Do you work alone, or as part of a team? An agent operating alone may do an excellent job, but if you need assistance at a particularly busy time you may get frustrated by their lack of availability or responsiveness. Try to work with an agent who is part of an immediate “team” that includes other Realtors® and admin staff . Beyond that, they should also have an extensive support team provided by the company they work for – eff ectively giving you multiple levels of assistance should you need it.
How many British clients have you worked with in the past? Despite what many may think, we do speak a diff erent language from Americans! Your transaction will go more smoothly if there are no communication issues caused by diff erences in real estate terminology in particular. Do not be afraid to ask for customer testimonials or references, and the ability to speak to previous clients.
What are some of the common pitfalls I may encounter? The agent should be able to articulate a number of areas where they will treat your transaction diff erently from that of a local. Some of these may include: currency exchange, money transfer and money laundering regulations, taxes, immigration, logistical problems associated with document signatures and notarization, foreign national mortgage requirements.
I’m not ready to buy yet. Are you happy to work with me? Be honest. Tell the agent if you are not ready to buy. All agents are self employed and are compensated only by commission earned on property sales. A good agent, one who understands an international client, will be happy to invest time with you in the interest of building a relationship for the future.
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