Canadians buying homes in Arizona

Canadians buying homes in Arizona

As home prices have declined in Arizona, Canadians buying homes in Arizona has become more prevalent. Canadians buying homes in Arizona have seen the huge opportunity. Whether you are a Canadian buying homes in Arizona for investment as a  second home or as an investment property now is a great time to jump in.

First step for Canadians buying homes in Arizona is to get a loan in the U.S. as a Canadian citizen

Earnest Money, Escrow and Signing for Canadians buying homes in Arizona

Earnest money which is used to open escrow once the offer has been accepted must be in U.S. funds. We can have you overnight funds to us, wire funds directly to the title company or bring it with you when we write an offer. Title and escrow companies in Arizona ensure there is title insurance on every property and make sure the contract is executed as written. You can buy a property in Arizona and actually close on the property from Canada if you choose to. Necessary paperwork can be signed in Canada and sent via priority mail to the title and escrow company prior to closing.  It is fairly straightforward for Canadians buying homes in Arizona.

When Canadians buying homes in Arizona make up thier mind to place an offer on a house and no financing will be required since it will be a cash transaction, the proof of funds (typically a bank statement) may be required to be in U.S. funds.

Inspection Period for Canadians buying homes in Arizona

It is important for Canadians buying homes in Arizona to understand the inspection process.  Whether you are a Canadian buying homes in Arizona or whether you are a Arizona buyer there is typically a 10 day inspection period begins once the offer has been accepted. During this time, Canadians buying homes in Arizona have the opportunity and responsibility to inspection the property and the surrounding area in detail. The Arizona Department of Real Estate has provided the Buyer Advisory to assist buyers in their due diligence.   Any Canadians buying homes in Arizona should read this document thoroughly.  Most Arizona properties are platted and do not require a survey. This is different from Canada where a surveyor’s certificate is required.

FIRPTA - The Foreign Investment in Real Property Tax Act

After Canadians buying homes in Arizona, they eventually may want to sell their property.  The Foreign Investment in Real Property Tax Act (FIRPTA) is relevant to Canadians when selling a property in the US. One of the exemptions to FIRPTA is that the house sells for less than $300,000. A foreign person is a nonresident alien individual; a foreign corporation not treated as a domestic corporation; or a foreign partnership, trust or estate. A resident alien is not considered a foreign person under FIRPTA. IRS Publication 515 can provide more detailed information.

Property Management for Canadians buying homes in Arizona

Nextage Realty offers full service property management. We have a turnkey process for Canadians buying homes in Arizona if they are shopping for investment properties in Arizona. We get the home ready to be rented, market the home to find a great tenant, screen the tenant, and provide rent collection and management services.

 To find out more about our property management services please feel free to call us. 1-888-460-3580