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Simplifying the International Real Estate Transaction by Mind Map: Simplifying the International
 Real Estate Transaction
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Simplifying the International Real Estate Transaction

Please consult with your attorney, accountant, and real estate professional before making any decisions to buy real estate. The purpose of this map is to supply with you with ideas that may or may not be involved in the process. Each transaction will be different for each country, state/province, and local municipality as each area has its own laws that govern real estate.

2. Addressing Common Problems

Cost of property

Currency conversion, http://www.xe.com/ucc/

Transferring of funds, http://banking.about.com/od/howtobank/a/bankwiretransfer.htm

Finding the right property

Usage, Vacation/2nd home, http://www.washingtonpost.com/blogs/where-we-live/post/buying-a-vacation-home/2012/05/29/gJQAuMvvzU_blog.html, Primary residence, http://www.realtor.com/home-finance/mortgages/before-buying-home.aspx?source=web, Commercial/investment, Income producing, http://rismedia.com/2009-09-19/top-12-tips-for-buying-an-investment-property/, Speculation, Property management, Assigned by property type, Resort, Short term vacation lease, Fixer upper, Find contractors, Find property managers

Location, Transportation, Local, Car, http://gasbuddy.com, http://www.autotrader.com, http://www.insurance.com, Bus, http://www.greyhound.com, Rail, http://www.amtrak.com/home, International, Air, http://www.airnav.com/airports/, http://kayak.com, Tourism, Why Belize? http://www.youtube.com/watch?v=JDiKKNXQuLo, Attractions, Events, Sports teams, Concerts, Nightlife, Neighborhoods, http://www.zillow.com, http://www.neighborhoodscout.com, City highlights

Immigration laws

Visa requirements, http://travel.state.gov/visa/immigrants/types/types_1326.html

Passports, http://travel.state.gov/passport/passport_1738.html

Financing

Customer needs financing

Customer is a cash buyer, Bank statement of funds, Wire transfer of funds

Tax laws

State taxes, http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=29

Federal taxes, http://www.irs.gov

Insurance costs

Property

Project

Health insurance

Property taxes

Escrow

How they are calculated

Country benefits

Gain, Retirement, Healthcare, Hold property for longer term, Only 70 years in China, Only 99 year land lease in Mexico, Create wealth, Maximize tax deductions, Transportation, Flight expense, Hotel expense, Amortization http://www.myamortizationchart.com, Investment accounts, http://en.wikipedia.org/wiki/Real_estate_investing

Lose, Must prioritize issues before making a decision, Social security, Benefits, Healthcare, Collecting pension, Taxation on pension, Lose social security benefits if gone more than 6 months (Canada), Lose country citizenship (China), Insurance, Tax breaks

Cultural nuances

http://www.realtor.org/field-guides/cross-cultural-business-etiquette

Kiss bow and shake hands http://www.amazon.com/Shake-Hands-Bestselling-Business-Countries/dp/1593373686

Referrals

Agreements in place to secure commission

Cooperating associations

Wire for US must be initiated from and to the real estate broker

A CPA, knowledgeable and seasoned finance expert as well as foreign association should be involved to educate and create a template on finalizing deals for the referring partners

Justifying foreign legal license capacities, payment to brokers (not agents) and/or mandatory or optional withholding taxes, issuances of a tax certificate, transfer of compensation (in the country closing real estate deal currency) which may create further need to consider for example services of Moneycorp to repatriate, wire and transfer funds.

May need to use CRS, TRC, ICREA's or "in house" referral agreement, issuance of proper invoice and billing, justifying correspondence

1. Coordinating the transaction team

Buyer's agent

Introduce buyers agency, Working with a Florida Realtor http://youtu.be/d6p0E17kv-c, Get certified CIPS http://www.realtor.org/designations-and-certifications/cips-designation, Find an area of specialization, Pick one or two countries, Have you traveled abroad?, Do you speak another language?, If not find a translator, Get TRC (Transnational Referral Certification) http://WorldProperties.com, Read a variety of publications, Miami global investors guide, Global economy, Networking, Real Buzz http://www.real-buzz.com, Social media, China http://qzone.qq.com, Brazil http://www.redimob.com.br, 1. Create value for representation, http://www.realtor.com/home-finance/homebuyer-information/hiring-buyers-agents.aspx?source=web, 2. Sign the agreement, http://en.wikipedia.org/wiki/Buyer_agency_agreement, 3. Coordinates the process of the transaction, 4. Ask for referral

Explaining the terms syllabus, Contract is a binding agreement, not a verbal understanding., Definitions, Townhome, Villa, Attached home, Cluster home, Buyer agent vs Listing agent, Who pays the commission?, Notary, Notar in Germany is appointed by the government and writes the contract., Title insurance, There is no title insurance in Europe

Exchange partner

Holds the money in escrow to fund the transaction

http://www.moneycorp.com/uk/

Money laundering laws, http://www.realtor.org/articles/anti-money-laundering-guidelines-for-real-estate-professionals, Can't wait to the last minute to transfer funds. They must be seasoned.

Banker

Opening a bank account, Personal, Corporate, LLC, or a trust account Not very easy

Attorney in US or specific state and Abroad Immigration laws federally governed, real estate is state bar limited

Paperwork, http://www.realtor.com/blogs/2012/06/08/do-i-really-need-a-real-estate-attorney/

Immigration/visa, US Citizen and Immigration Services http://www.uscis.gov/portal/site/uscis

Estate planning, How the estate is transferred upon death, Passing on property to children/or spouse/or third parties foreign providing laws or US-foreign fiscal convention allows it

How to take title, Joint tenancy, Couples, Single, Trust

Translator

http://www.themarketinganalysts.com/en/pages/real-estate-translation-get-a-free-translation-quote-from-our-international-investor-translator-team/

Tools (not to be relied upon)

http://babelfish.com

http://google.com/translation

Accountant US and foreign

Make recommendation to a local CPA

May disagree with the lawyer on how to structure the transaction

Taxes may be more/less depending on where the money is coming from

Laws to be aware of, State taxes, http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=29, Federal taxes, http://www.irs.gov

Tax exemptions

Estate taxes

How real estate taxes are calculate in US, Some countries do not charge on annual basis

Insurance agent

Must have a credit score to get property insurance

Away more than 90 days you have to pay higher premium (10 - 20% higher)

HUB international insurance http://www.hubinternational.com, Property, Home

Commercial

Life insurance to pay estate tax, They can take in their own country which may be less expensive in local currency.

Health insurance, Considerations for each country, http://www.expatforum.com/expats/france-expat-forum-expats-living-france/59242-repatriation-insurance-question.html, http://www.cfe.fr

Travel insurance, http://www.allianztravelinsurance.com, http://www.mondial-assistance.fr/#

Team member considerations

Do they speak the language?

Do they understand cultural differences?

We cannot suggest partners because of liability, We can suggest a few people to avoid liability

Avoid anti-trust

Make your own list based on referrals

Title company

Explain title insurance

Explain escrow

Explain closing process

7. Closing preparation

Transfer utilities

http://www.trulia.com/blog/olga_mayayeva/2009/03/closing_day_checklist_wh

Moving company

8. Follow up

Neighborhood activities checklist

Ask for referrals

Get an international driving permit http://www.aaa.com/vacation/idpapplc.html?association=AAA&clb_id=212&secure=N

Alarm security

Homewatch services

Mail forwarding

6. Funding the transaction

Escrow

Currency exchange

Money is seasoned

http://www.moneycorp.com/uk/business/trade-now/faqs/?faq=0

3. Property Search

Finding the right property

Searching on the MLS

Searching http://REALTOR.com/global

Searching company website

Property type, Single home, Villa, Short sale, Foreclosure, New construction, Condo, Farms/acreage, http://www.dep.state.fl.us/lands/faq.htm, Lease, Find a property manager

Public records, Property tax information, Ownership records, Schools

IMAPP http://www.mfrmls.com/member-benefits/imapp-benefits

Metric conversions

http://www.metric-conversions.org

Currency conversions

http://xe.com

Associaiton bylaws

Lease vs vacation home

55+ demographic (80% rule)

Making improvements

www.floridahoamembers.com

Appraisers

County appraisers http://dor.myflorida.com/dor/property/appraisers.html

Property appraiser

Court records

http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=13

4. Preparing an offer

Set appointment with transaction team

Create a schedule of milestones for the transaction

Property inspections

Appraisal (if needed)

Explain deadlines for contract

Set expectations for proper follow up

5. After offer acceptance

Order inspections

Building, http://www.ashi.org

Termite, http://www.termiteinspection.com

Structural engineer

Mold, http://www.epa.gov/mold/

Radon, http://www.epa.gov/radon/

Boat slips, Inspection for canal, sea salt water, bodies and open Ocean slips and davits: think of CCCL (code) + may need to verify if dragging is required some time in the near future (cost) or to check the sea walls by specialized divers (expensive!).

Appraisal

http://www.realtor.com/home-finance/homebuyer-information/what-is-a-property-appraisal.aspx?source=web

County appraisal

Title search and insurance

http://www.bankrate.com/finance/mortgages/6-questions-to-ask-about-title-insurance-1.aspx

CLUE report

https://personalreports.lexisnexis.com/fact_act_claims_bundle/landing.jsp