Buying Property in Canada

There are very few restrictions when it comes to non-residents buying property in Canada. If you live there less than 6 months a year you can still buy property, open a bank and generally perform day to day personal and business functions. If you plan to be in the country more than 6 months you’ll have to apply for immigrant status.

It’s advisable to use a realtor to help you find the right property for you.  Some Provinces limit the amount of property or land that a non-resident can purchase; realtors can steer you in the right direction according to your needs and the laws of the individual Province you want to buy property in.

Once you find the right property you will make an offer, which has to be in writing. This is another area where it’s invaluable to have a realtor. All the terms must be meticulously listed and any items you want left with the house or property must be listed as “chattels included”. Along with the offer you’ll have to post a deposit. Once you sign the offer it is legally binding and if you back out you will lose your deposit and may even be taken to court. Once your offer is accepted the deposit is put in the bank and applied to the purchase price.

You will have to pay a property transfer tax, about 0.5-2% of total value.  It is generally 1% of first $200,000 and 2% of anything over that.

Things are a bit different in Canada. Realtors are usually self-employed so commissions are negotiable. That can be quite an advantage to you and reduce your costs of buying. Non-residents can generally finance 65% of the purchase price and make a 35% down payment. You’ll be interviewed and your personal details verified; if you’re a good risk then chances are you will be financed. Approval takes about 2 days after application.

Since foreign banks can’t provide mortgages in Canada you’ll have to arrange the mortgage there. You’ll need an attorney or a notary public to prepare all the documents and take care of the registration at the Land Titles Office. It’s advisable to have both.

Buying Property in USA

Investing on property in the USA has become a very rewarding business especially after the recent recession and more people are finding great opportunities in this regard.

USA employs certain minute restrictions on purchase of property by foreigners, especially at the federal level. Oklahoma, for instance, does not permit foreigners to buy land, but they can own condominiums. Similarly, being a large country with several states, the legal procedure for procuring property differs from place to place too.

Once you have identified the property through a real estate agent, you need to make an offer to the seller and after due negotiations, an agreement of sale can be drawn up which  will give in detail the purchasing price, various related terms pertaining to the purchase as well as the time frame within which the sale should be closed. It is also important that your attorney checks out the relevancy of the various documents of the property like the deed, survey, title insurance policy, mortgages if any on the property, tax receipts, utility bill details, permits, etc thoroughly.

You can sign the contract once you are satisfied with the terms and conditions of the sale and during that time, you will be required to deposit an amount equaling to 10% of the value of the property. The deposit will be held in an escrow account with the seller’s attorney till the deal is closed. The seller needs to counter sign the contract at this time.

Once, all the documents are in order and thoroughly verified and payment towards the property deposited in the escrow account, as well as the various taxes and fees required by law paid up, the sale is closed in the presence of all parties concerned. Another procedure adopted while buying property is the title insurance policy which can be obtained after closing the deal. The owner needs to secure a title report prior to obtaining the title insurance. The transfer of the title completes the registration process and the new owner can take over the newly acquired property.

Buying Property in Mexico

Mexico is a beautiful country with an abundance of mountains, lakes, beaches, forests, etc and these days more foreigners desire to invest their money in this country by buying property to settle down on a long or short term basis. But the procedure of acquiring property in Mexico could be stressful and difficult if not done in the proper manner, especially since foreigners are not allowed to own property in strictly legal parlance. But with proper legal advice and backup, there are ways to go about it.

Property in the ‘restricted zone’ can be acquired by means of appointing a Mexican bank as a trustee. The bank will act on the foreigner owner’s behalf and while legally, it is the owner of the property, it is possible for the foreigner to enjoy the exclusive rights of ownership. This means that the owner can treat the property to be his own and use it or rent it out or even sell it whenever required.

The procedure of buying a property involves a whole lot of paperwork and documentation for which you will require the services of a reputed and licensed lawyer who can help you with the various legal proceedings involved in the purchase. If you have identified the property that you would like to acquire, get the attorney to make a thorough check on the ownership deed as well as a lien certificate with details of the property that should be supplied by the vendor. If things are satisfactory, you, as the foreign purchaser, can make an offer in written form along with a deposit of about 5 to 10% of the value of the property. If the offer is accepted by the vendor, the buyer can deposit half of the remaining amount as per the contract.

Being a foreigner who wants to own property in Mexico, it is imperative that you register the property at the Ministry of Foreign Affairs. At the time of closing the sale, all the outstanding amounts including the required fees, taxes, and other charges must be paid in full. This process takes place in the presence of the Notary public.

The whole process of buying property in Mexico could take about 45 days.