The Latest in Arizona Real Estate News for Canadians and Canadian Investors

Many international investors are savvy and experienced in buying real estate in their home country or elsewhere around the world.  Arizona however does approach the process a little differently than many other places.  Today we would like to share some of the “ins and outs” of the escrow process and some basic things the Canadian investor needs to know when purchasing income property in Phoenix and the surrounding areas.

Once you’ve had an offer accepted on a piece of property, it’s time to open escrow.  You may select any escrow company you would like typically, however some bank-owned or short sale properties may require that you use their specified escrow company.  Never fear, all escrow and title insurance providers in Arizona are completely regulated by state agencies and your funds are protected.  (If you have further questions on this specific issue, we would be happy to direct you to the applicable state agencies for more info.)

Escrow is the process in which both buyer and seller deposit funds, deeds/documents, and instructions with a neutral party (the escrow company) for disposition.  Your funds will not go directly to the seller.  Instead the escrow company will ensure that all terms and conditions of the contract are met, at which time they will release the funds to the seller and the deed to the property to the buyer.  This process (which again is highly regulated in protect the parties) is designed to provide oversight and impartiality to the transaction, and to coordinate the complex and numerous parts of the transaction.

Once the contract and earnest deposit are placed with the escrow company and an escrow file is open, the company will research the property’s title to ensure that no claims exist that might interfere with the seller’s ability to transfer clear title to the buyer.  The escrow company will also provide the buyer with title insurance, a policy that guarantees clear title.

Speaking of title, there are a variety of ways that the buyer can hold title in Arizona, and these are a little different than what you might find in other countries or even in other states in the U.S.  The escrow company representative can explain them to you, however it’s always a good idea to consult with a local attorney to be sure you’re doing the right thing for yourself legally.

Many investors are unfamiliar with the Foreign Investment in Real Property Tax Act of 1980, also known as FIRPTA.  Again, talking with an attorney or tax professional is critical, however the basic precepts of this tax law include those transactions when a foreign national sells a property in the U.S for more than $300,000.  In that case, the buyer is required to withhold 10% of the sales price for payment to the Internal Revenue Service.  If the transaction is conducted through escrow, the escrow company normally takes care of this however there are a number of exemptions that may make the withholding unnecessary  The escrow company and a qualified local attorney should be consulted about the applicability of FIRPTA when buying property, however foreign investors must also remember about FIRPTA when it comes time to sell the property.

Arizona is literally one of the best spots in the world today for the investor to purchase real estate and the process is easy if you have a good team on your side.

Next up, the Top Five Reasons that Canadians Should Invest in Arizona Real Estate…

———————————————————————————————————————————-

NOTE:  We pride ourselves on bringing you the most informative, up-to-date, and accurate information possible about the often-confusing world of real estate investing.  Nothing we post however is intended to be taken as investment, real estate, or legal advice.  You should always contact a licensed investment, real estate, or legal professional for information and advice about your own unique investment scenarios.

Artisan Real Estate Group is one of the top boutique real estate firms in Arizona.  We provide an end-to-end suite of services to our investor clients, including a full range of residential and commercial real estate services, income property location service, investor services, property remodeling, restoration, and rehabilitation, real estate finance consultation, REO and bank-owned property services, trustee sale consultation and bidding representation, and new home builder services.   Our international team specializes in helping investors from all over the world with their Arizona real estate transactions.  Our goal is to find the best properties with the highest cap rate and ROI for our investor clients.  Contact us today to find out how we can help you grow your personal wealth and investment portfolio.  Artisan Real Estate Group, http://www.artisanrealestategroup.com/  or call us at (602)644-1280.  Email: info@artisanrealestategroup.com