The Question: What is the difference for a foreign person purchasing a home in the United States, in Florida? As for the actual purchase, there is no difference financially. The HUD Settlement Statement will be drafted as if the purchaser was an American citizen. Of course, when a foreign owner sells, there is the 10% Withholding, but as far as the purchase is concerned, no additional deposits are required and there are no fees other than those charged in a normal transaction, to an American Buyer.
However, there are issues that may crop up after the sale. For instance, if the foreign owner also purchases an automobile, insurance may be difficult to acquire for that car unless an American driver's license is obtained. Allstate will insure people with Canadian driver's licenses if a five year driver's record and a letter of experience from the Canadian Insurance Company is obtained and submitted to Allstate. If the owner resides in a foreign country most the year, utility accounts will need to be set up online, as bills mailed to another country may not arrive in a timely manner. There are also the issues that affect all "snowbirds," Americans living in other parts of this Country or foreign citizens living in their own countries most of of the year, such as yard maintenance and tropical storm preparedness.
Also, foreign owners cannot claim or take advantge of Florida Homestead.
Lloyd Nichols
Right Choice Realty
239-810-2980
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