Richard Bazinet MBA, CATM, Realtor®

 Associate

arizona's best real estate

Are You A Canadian Moving To Arizona?

This may apply to other non-residents as well.

Canadians moving to Arizona should know that purchasing real estate in Arizona may differ from their previous experience about purchasing real estate in Canada. Particularly concerning matters about obtaining a loan, to defining ownership known as acquiring "title", and then how different types of deeds are used. For example, points, origination and documentation fees, and the 'escrow' process are the norm while these are somewhat foreign to Canadians. And unless you pay all in cash, you must pre-qualify for a loan before you purchase real estate. And often, your purchase offer on a property may be outright rejected by the seller unless you prove the existence of your pre-qualified loan and/or cash, and an earnest money deposit.

Many lenders have restrictions imposed on non US citizens and/or non-resident aliens when applying for a mortgage loan while other lenders don't. The process is not standard nor universalized across the Arizona  lending industry. Problem is that most lenders only use the US credit system and rarely consider using or cannot use the Canadian credit system for Canadians moving to Arizona. It is not unusual and in fact the norm for Canadians with a previous Canadian credit history having to start from scratch again. It can present a problem in obtaining a mortgage loan, and as well, unfortunately, in Arizona, it means paying a higher cost of credit. BUT, there are ways around that.

And then, some lenders may consider the type of US Visa that will be issued for your stay in Arizona.

Mortgage loan interest is also calculated differently. In Canada, compound interest is calculated at the beginning of the period, whereas in the USA, it is calculated at the end of the period.

So if you are planning to move to Arizona, it will take a little bit of planning, an experienced and competent real estate professional, and a reliable lender to work with you.

It would be best that you contact me as soon as possible when you learn or decide to move to Arizona. Then we can work all the kinks out before you start looking, and then get you to your way as seamlessly as possible to your new property.

Real Estate sold by non-resident alien

The Foreign Investment in Real Property Tax Act (FIRPTA) generally requires the withholding of 10% of the sales proceeds on the sale of any real property by a non-resident alien. At the closing, the 10% of the sales proceed are forwarded to the Internal Revenue Service. Upon the filing of a tax return by the non-resident alien, the non-resident may be entitled to a tax refund of part of all of the 10% sales proceeds.

One EXCEPTION to the 10% withholding requirement of the FIRPTA is the sale of the home of a non-resident meeting two requirements: 1) sales price of less than $300,000, and 2) the buyer using the home as a principal residence. For example, this would apply in particular to a seller being a non-resident alien who owns an investment property in Arizona.

For any questions related to real estate in Arizona, a smooth professional transaction, and the above subject-matters, I'd be delighted to help.