Do You Need A Lawyer To Buy A Property?

In the United States, lawyers specializing in real estate act in the role of what a notary or notary would do in our Latin American countries, so it is very common to hire a lawyer to write the deed for the purchase of real estate in the United States.

It is important to have legal advice because the lawyer will help identify potential problems in a transaction and will try to prevent any type of problems. When you buy a property, there may be problems with tenants, title, or even taxes, so for this, you have to hire a lawyer agency such as experts of Freeman Lovell, PLLC. You have to know how to structure an investment to try to pay the least amount of taxes possible within the law.

How Is The Process Of Purchase?

First, an offer is signed, which is generally prepared by the real estate agent; they are standard documents. Once that offer is approved by the seller, it becomes a contract, money is deposited in reserve in the lawyer’s account, not directly to the seller; there is an inspection period, where the buyer can regret it and back out of the operation, and once everything is in order, assuming that the contract is not going to be canceled, the deed is signed, generally, 30 days after having signed the contract.

Is It Better To Buy As An Individual Or Through A Corporation?

Foreigners will always want to buy with a corporate structure to avoid withholdings at the time of selling the property and also reduce the tax impact. For an American, depending on whether it is a family asset or your primary residence, in that case, we recommend that it be in your name.

And if it is an investment property, in that case, we would recommend purchasing with a company.

Generally, the type of companies we use for real estate investments protect the owner or investor from being personally responsible for those obligations, but the companies respond with the assets they have. 

That is why we recommend not grouping several investments within the same company, because if that company has a problem, it will have to support that situation with all the properties it has.

Do I Need A Company For Each Investment Property?

That’s optimal. Sometimes we have to evaluate the cost-benefit, and depending on the amount of the investment, it may not justify having so many partnerships. But if we can get the client to invest a little more in structure, we recommend that they have a company for each property.

There is no limit to the number of companies, which are very easy to establish and are generally ready in 24 or 48 hours. Additionally, the person doesn’t need to be physically in the United States.

What Taxes Do Foreigners Who Invest In Property Pay?

Four taxes can impact investment. There is the inheritance tax, the income tax, the dividend tax, and withholdings at the time of sale. And depending on the structure they used to invest, three of those four taxes can be eliminated. And the fourth, which is the income tax, is the one that can be reduced a little.

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