What should an overseas buyer expect to do when trying purchase a property in California?

Look for a local agent that is familiar with the area.

Find the home either through the use of the internet

• Find a title company that is familiar with international wires.

• If the buyer is looking to get a loan for the purchase the title company does not require anything specifically from the buyer.

• However, the lender may have some additional requirements that it may need from the lender in order to finance the loan.

• If certain deeds need to be signed and notarized, the buyers can make an appointment at the country’s U.S. Embassy and one their representatives can notarize the document.

Differences:

1. Change in time zones – alleviated by in depth emails from title and real estate broker
   1. This can also be addressed by allowing your client to set up a special power of attorney. Thereby creating an attorney-in-fact to sign and act on their behalf.
   2. This document must be notarized and approved by the title in order to be used in the transaction.

When representing the buyer, the buyer must be cognizant of the fluctuating currency exchange between the countries.

1. 1. I generally would recommend to my clients to market time their wire, if the exchange was not in their favor to an established dollar account here in the US. Depending on how long the escrow is. When the duration of contract was longer than 6 months, I would dollar cost average their money into the U.S. where they would be getting the advantages of a lower exchange rate.
   2. If they did not want to establish a dollar account, I would recommend wiring directly to the escrow company. Most of the escrow companies that I worked with would pay an interest rate while they had the money on deposit. However, it would not be very much.

Are mortgages an issue?

a.    Most of my clients would purchase all cash. However, there are ways to establish a mortgage internationally. You will have to use a major lender (Citibank, Chase, or Banco Popular)

b.     If your client has enough in deposit with an international bank they can procure a mortgage loan through a major lender.

c.     If they don’t have the money in deposit, my last option would be to work with a mortgage banker. While I was in San Francisco, I had several contacts that would lend to foreign dignitaries.  The application was different but the loan was possible with proper documentation and assets (land, businesses) abroad.

4.   Time?

a.    Truthfully, time has never been a factor in my transactions. The key is constant communication sometimes at odd times at night, or early in the AM.

b.    Could take 5 extra days to receive international wires depending on the wire house and from the country that it is being sent from.

That all said, keep in mind other factors may conflict with a proper purchase, be aware of the currency exchange and work with someone you can trust.