For Foreign Real Estate Buyers

In just the last two or three years – or so it seems – buyers from China, Canada, India, and other nations are snapping up properties all over the U.S., both as investments and as residences and vacation homes. Foreign buyers are a rapidly growing segment of overall U.S. sales. According to the National Association of Realtors (NAR), for the period from April 2013 through March 2014, sales to international buyers totaled $92.2 billion, a 35 percent increase from the previous 12-month period’s $68.2 billion. International sales accounted for approximately 7 percent of the total U.S. existing homes sales for the same period. Buyers looking at properties in the Chicago area should seek the advice and services of an experienced Chicago real estate lawyer to make certain your interests are protected, to anticipate any potential problems, and to assure that every aspect of the transaction is compliant with Illinois law.

Buyers from outside the United States should know that in the current economy, financing can be a challenge. Mortgage qualification criteria are tough. A community bank or other independent financier which lends on a case-by-case basis may offer somewhat better terms. A foreign buyer will also need to hold a valid visa, prove that you may come and go freely into the U.S., and also provide proof of residence in your country of origin. If you’re buying property in Illinois, obtain the services of an experienced Chicago real estate lawyer to walk you through the various tax and legal complications.

Some lenders now require foreign property buyers to have a U.S. Social Security number or individual taxpayer identification number. You’ll need that anyway when you rent or eventually sell the property. You’ll also want the counsel of a good Chicago real estate lawyer. If you’re actively looking at properties or just thinking about purchasing real estate in the Chicago area, make the call promptly.