Invest in USA Property
Buying USA Property
The Buying Steps for Your Investment Property
The content on this page is reproduced with kind permission from Richard Lillycrop.
You have now identified the property you wish to purchase, what next? First you need to secure it, to stop anyone else buying it. To do this you will have to pay an earnest deposit, typically $500-$1000. This shows your commitment to the seller and you will then receive the Purchase Agreement (shown above). This shows your details, the property information, the price agreed, the down payment deposit, the method of payment, the closing date and other information. If you are buying your property through your LLC (Company), make sure the LLC name is shown and not your name. Also make sure when you sign anything on behalf of your company, to sign Your Name (Member).
Your next step will be to arrange finance, if required. This can be the make-or-break when buying and can take a while to arrange. You may consider putting a condition in the Purchase Agreement stating it is conditional upon finance being approved, if you do not do this then you risk losing your deposit, if financing is not confirmed.
The next stage is to get the property inspection done. See Getting a Property Inspection. This will highlight any areas of concern and may allow you to re-negotiate on the purchase price, if repairs are needed.
Assuming you are still happy to proceed, you will receive a HUD from the title company. See The HUD. This will show clearly a complete financial breakdown of your purchase, with the total figure you have to pay. You will need to send the title company a check for this amount, so that they receive it before closing. INBIB will provide this service.
You will need to get the closing documents (including loan documentation if applicable) notarised by a US notary (INBIB have their own Notary). The closing documents will then need to be mailed back to the title company, in time for closing.
Assuming everything is in order for the closing, the title company will register you or your company as the new property owner with the county and you are now the proud owner of your investment property.
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Please Note - The information contained above should not be regarded as legal or tax advice and is our opinion only.