You don’t have to fly to America to buy real estate. Today it is possible to buy remotely. If a real estate transaction in the state of your choice is handled by an attorney, you can simply execute a power of attorney for him, and the specialist himself will conduct the transaction from start to finish. Such a power of attorney can be made at the U.S. consulate in your country. There, the buyer will explain all the details of the transaction. A special trust account will be set up in the name of the lawyer, where the buyer can transfer money to purchase real estate. Then the funds are transferred directly to the seller.
It is worth saying that the risks of remote purchase is almost reduced to zero, if the buyer has found a licensed professional.
That’s all applied to states where the purchase is done through an attorney. In other states, it is done through an “escro” – a special company. There is practically no difference. The same way the necessary documents are prepared at the consulate and sent to the states. The money is transferred to a special account.
If the buyer is going to buy real estate on credit, you have to open an account in one of the American banks.
Signing a contract to buy real estate in the U.S.
Deal from start to finish will take no more than a month, if it is not about buying an apartment on credit. If the object selected, the price suits you, and the broker is ready to begin work, he prepares an offer – a model contract, which is realtor association of the particular state. The document is signed by the buyer, and the broker sends these papers to the seller.
After that comes the stage of the contract of sale between the buyer and seller. There is no need to be afraid. This contract is signed in the company of a realtor. And the legal control is done by the Title Company and the Escrow Company. If the deal is done remotely, then instead of escrow comes into play the trusted person – the buyer’s lawyer (Closing Attorney).
At this stage the buyer makes a deposit: about 5% of the value of the object. Now checks the condition of the property. It must be said that in this respect the Americans are good. Specialist will identify defects in the property, faulty plumbing, electrical wiring and other utilities. These services will cost $300-500. For an additional fee, the specialist will look for termites, radon, mold, etc. In other words, the uninhabitable property will not be sold. After that you should pay for the apartment in full and get a document on the right of ownership – “deed”.
Additional expenses for buying real estate in the U.S.
So, as mentioned above, 5% of the purchase amount receives a broker, and usually pays it to the seller. He also bears the cost of tax on the transfer of ownership of real estate. Services of a title company (or a lawyer), insurance and various fees are paid, as a rule, by the buyer. This is approximately 1-2%. Although, in fact, additional costs are shared between the parties when the contract is signed.