Welcome Canadian buyers!
For years now, Canadians have been buying up Florida real estate and businesses.
We are here to help you through the many phases of a Florida real estate purchase.
Florida Real Estate Info for Canadian Buyers
Canadian Buyers – Real Estate Fees
Before you buy Florida real estate, you will want to know the majority of expenses you will face in a U.S. real estate transaction. In Florida, most of the expenses in a real estate transaction are the responsibility of the seller, not the buyer.
As a Canadian buyer, you should allow approximately 5% of the purchase price to cover legal, title insurer and notary fees, title insurance premiums, transfer taxes, property taxes and mortgage loan fees (if applicable).
DEPOSIT. When you submit a formal offer to a seller, you will also need to offer a deposit. For your deposit amount, you will need to make a check payable in U.S. Dollars. Most Florida real estate contracts require at least 3% earnest money to ensure that you are a serious buyer. Your deposit will be held and credited to you at the close of escrow when the real estate property transfers to you.
ESCROW. As a buyer, your most significant fee is escrow. Once a seller has accepted your offer, we will “open escrow” with a neutral 3rd party escrow service. The escrow service provider is charged with (1) safeguarding all monies put on deposit and (2) ensuring the timely completion of all paperwork needed to transfer the property fully and legally to you. Your escrow amount will depend on the size of your Florida real estate purchase. Prior to agreeing to an escrow service provider, you are entitled to know your approximate fees.
LOAN FEES. If you apply for a home loan in the U.S., your fees are determined by the lender. Prior to signing for a home loan, you are entitled to receive an estimated closing costs statement which details your fees. Expect to put at least 30% down if you are using a U.S. lender to finance your purchase.
INSURANCE. If you apply for a home loan in the U.S., you will need to provide proof of sufficient insurance to protect your asset.
Canadian Buyers – Real Estate Process
FINANCING. For Canadian buyers, paying cash for U.S. properties is highly recommended. If you need a loan, your next best best is working with a lender in your own country. However, if needed, we can direct you to U.S. lenders loaning to foreign nationals. Generally, Canadians have to put down 30% or more to receive U.S. financing.
PURCHASE CONTRACT. Once signed, a real estate purchase contract is binding. However, contingency clauses allow you or the seller to withdraw under specific circumstances.
TITLE INSURANCE. Once a contract is signed, a title insurance company needs to scrutinize public records to insure the property against any third party claims.
HOME INSPECTION. After your offer is accepted, you have a certain period of time to schedule a physical inspection of the property. We always recommend an inspection.
U.S. NOTARIZATION. Generally, if you are buying with cash, you will not have to notarize anything. However, if you are financing your purchase with a loan, your loan documents will need a notarized signature by a U.S. notary. Most Canadian buyers go to the nearest U.S. consulate for U.S. notary services. We can help you locate a notary close to you.
UTILITIES: We will provide you with a list of the Florida utility providers so that you can set up utilities in your name prior to closing. Simply let the utility companies know the approximate date of the sale.
Canadian Buyers – Real Estate Taxes
In Florida, annual property taxes amount to approximately 1.5% of the property’s value. All real estate rental income is subject to tax in Florida.
Canadian Buyers – Passports, Visas, Residency in the U.S.
When buying property in Florida, Canadian buyers will need to obtain the right passports and visas.
PASSPORT. Canadian citizens must obtain a passport to visit the U.S. for business or pleasure without a visa for up to 90 days per year.
E2 – L1 – EB5 – VISA OPTIONS TO CONSIDER. Canadian citizens wishing to stay between 180 days or six months may do so under the current NAFTA Treaty Agreement. Should a Canadian Citizen wish to immigrate to the US on a temporary basis and live full time in the city of choice they must attain an E2 Visa or an L1 Visa, which are non-immigrant Visas. The requirements for each of these Visas require the purchase of a business in order to make application to the Embassy in their country of Origin. Florida International Realty Orlando and its team of professionals have over 25 years of experience in assisting Canadian and other International clients secure a non-immigrant Visa or permanent resident Visa through the E2, L1, and EB5 Green Card Visa. These Visas permit the beneficiary and their family to work, attend school, and become a part of American Society.
Contact Us
If you are a Canadian citizen interested in buying property or a business in Florida, or wishing to immigrate and live in the US on a full time basis, then our team of professionals to discuss your particular desires and circumstances. Email Peter Currey at peterc@orlandoie.com or peterh@orlandoie.com for a free consulation to explore the many benefits of living in Florida.
