You do not need to be a resident of the United States to buy real estate in this country, since American law does not restrict the purchase of residential and commercial properties by foreigners. Indian citizens do not need any special permission to acquire residential and commercial properties in the United States of America.
The beginning of the way
First of all, you should decide on the state. There are 50 of them in total, and they differ not only in climate but also in socio-economic conditions, which significantly affects the value of a real estate object. Next, you need to decide on the real estate itself (apartment, country house, townhouse, etc.) and a realtor (in the USA he is called a broker).
In the United States, you cannot make real estate transactions without a realtor. Be sure to work through a good specialist who is licensed and a member of the NAR (National Association of Realtors). Preference should be given to a specialist who has experience in selling real estate to foreigners. By the way, all commissions for the work of the broker are paid by the seller, not the buyer.
We can say that this is the most crucial step, because a lot depends on the qualifications and experience of the broker, although there is no particular need to be afraid. As a rule, all brokers are a priori qualified, since it is rather difficult to obtain a license for this type of activity in the USA.
Many residents of India are deterred by real estate prices in the United States. If someone just wants to invest money in real estate, then they usually do not have problems with money. But there is a category of Indian citizens who want to immigrate to the United States. They are just very concerned about prices. Although the opinion about the huge cost per square meter of living space in the United States is slightly mistaken.
Here, again, it is important to consult with your broker: he will select a good option for exactly the amount that the buyer can afford to spend. There are states where apartments are not expensive at all. For example, in the states of Connecticut and Utah. In any case, you can get a mortgage, which is much cheaper in America. This is a good option for Indians who are going to move to the USA and get a job in their specialty. It is known that the level of wages overseas is much higher than in India. Therefore, it will be possible to successfully live, work and pay off the mortgage.
Remote purchase of real estate in the USA
You don’t have to fly to America to buy real estate. Today it is possible to buy it remotely. If in the selected state a real estate transaction is drawn up by a lawyer, then you can simply issue a power of attorney for him, and the specialist himself will conduct the transaction from start to finish. A similar power of attorney can be made at the US consulate in your country. There, the buyer will be explained all the details of the transaction. A special trust account will be opened in the name of a lawyer, where the buyer can transfer money for the purchase of the real estate. After that, the funds are already transferred directly to the seller.
It should be said that the risks of a remote purchase are almost reduced to zero if the buyer has found a licensed specialist.
This all concerned the states where the purchase is carried out through a lawyer. In other states, it is done through “escrow” – a special company. There is practically no difference. The consulate also draws up the necessary documents that are sent to the States. The money is transferred to a special account.
If the buyer wants to go overseas himself, then it is better not to take more than $ 9,999 with him. If the amount in cash exceeds this limit, then the money will have to be declared. It is better in this situation to transfer most of the money to a trust account.
If the buyer is going to purchase real estate on credit, then he will have to open an account with one of the American banks.
Conclusion of a contract for the purchase of the real estate in the USA
The transaction from start to finish will take no more than a month if we are not talking about buying an apartment on credit. If the object is selected, the price suits and the broker is already ready to start work, then he prepares an offer – a standard contract, which is drawn up by the real estate association of a particular state. The document is signed by the buyer, and the broker sends these papers to the seller.
This is followed by the stage of concluding a sales contract between the buyer and the seller. Don’t be afraid. This contract is signed accompanied by a realtor. Legal control is exercised by the Title Company and Escrow Company. If the transaction is made remotely, then instead of escrow, a trusted person comes into play – the buyer’s lawyer (Closing Attorney).
At this stage, the buyer makes a deposit: about 5% of the cost of the object. Now the condition of the property is being checked. I must say that the Americans are great in this regard. The specialist will identify defects in the object, malfunctioning plumbing, electrical wiring, and other communications. These services will cost $ 300-500. For an additional fee, the specialist will look for termites, radon, mold, etc. In other words, unsuitable housing real estate will not be allowed to be sold. After that, the full payment for the apartment is made and the title deed is received.
Important: real estate in the United States must be insured. This is a legal requirement. The title company deals with insurance, after which the policy is handed over to the buyer.