INVESTMENT INFORMATION FOR FOREIGN CLIENTS
The US Immigration service has established various visas for individuals who wish to purchase property in the United States. We have a full description of these in the VISA INFORMATION section of these pages. Once we are informed by a client that he has an interest in investing in a US business we can place him in contact with an US Immigration attorney who will begin the approval process leading to the visa. The client will advise us of the type of business he is interested in and the general amount to be invested. Once we have this information, we will present several properties to consider. When a decision is made, funds will be placed into escrow to remove the property from the market pending and subject to the visa being granted as well as approvals by the client and various inspectors. Additionally, we will locate licensed auditors to go over the sellers records and holdings to verify the claims made by the seller and to substantiate the value.
Insurance: Property Insurance is common and available in the United States and provided by a number of competing licensed companies. Insurance companies are carefully licensed and regulated. Claims are guaranteed and paid. Management companies are available and absentee ownership is common and very workable.
Escrow Accounts: A word here about the escrow account. In the US, the State of Florida has mandated that all licensed realtors participate in the Real Estate Guarantee Fund that provides for repayment of any misappropriation of funds from a brokers escrow account. lawyers, as well, have bonded guaranteed escrow accounts that provide this same protection. The escrow accounts are used to provide proof of funds to be used in a purchase of a business or property. In general, ten percent of the selling price is sufficient to remove a property from the market until a closing or settlement can be arranged.
For an absentee purchaser to make an offer in this way is not unusual and perfectly understandable by all parties. The client has a clause in the purchase contract stating that the purchase is subject to his obtaining preliminary approval from the US Immigration service that his L Visa has been approved. The visa is awarded upon proof of his investment in the United States economy as per the definitions under which the L Visa is issued. Additionally, the purchase is subject to the buyer approving the independent audit by a accounting firm specializing in business accounting and a inspection of the premises to verify the building condition, inventories and all related factors. Once the buyer has accepted the findings of the inspectors, a closing is scheduled wherein the deposits into escrow along with the final and full purchase amounts are paid to the seller who signs over the property to the buyer.
If for any reason, the property is found to be unacceptable, the buyer will receive back all his deposited funds from escrow, so by this methodology, there is little risk to the buyer as the laws of the State of Florida and of the United States fully protect his money. In the United States the law provides that the buyer must receive a good faith closing statement indicating all the expenses that he will have to pay that are involved in the transaction. This statement is delivered in advance of the closing and can also be included in the purchase agreement. Such normal charges to the buyer include the costs of title insurance which is a further protection, the cost to prepare the abstract, which is a search of the deed and prior liens to insure that there are no encumbrances such as unpaid liens or mortgages and that all the parties who have, or have had ,any possible claim to the property have signed off so that at closing the property is free and clear.
Also, in a purchase of a business, it is not uncommon for the seller to take back or hold a private loan or mortgage allowing the business to partially pay for itself.. This information will be known in advance and become part of the purchase contract.
In Moscow, for example, we have a contact with a large foreign European bank who is able to arrange for the electronic transfers of funds into US escrow accounts. We have hands-on experience in the business and have been involved in such transactions for many years.
Purchase of a business in the United States by foreign nationals is nothing unusual and we stand ready to provide a full range of services to facilitate the sale. We can provide homes as well as the business and recommend all manner of local services from banking to shopping. Our offices will always be open to you and we look forward to hearing from you in the near future. Tell us how we can help.
CONTACT
ELENA A. FIRTH
DIRECT
954 449 4262
mailto alyonafirth@hotmail.com