What is FIRPTA? Real Estate Tax Law for Foreign Sellers and Buyers

Tax law might be the most confusing part of the overall real estate process to the average person. No one wants to pay more in taxes than they’re supposed to, but you also want to pay the right amount of taxes so you don’t violate federal internal revenue code. When it comes to real estate investments, few situations are more fraught with potential misunderstanding than transactions with international persons who aren’t familiar with the intricacies of U.S. real estate transactions and tax law. The Foreign Investment in Real Property Tax Act was designed to solve this exact scenario. Known as FIRPTA, this legislation ensures that foreign persons conducting real estate business pay the necessary taxes when selling property. The purpose is to hold all parties accountable to the same laws that govern domestic real estate. The logic is simple: if the property is in the United States, then taxes on that property must be paid, even if the seller is not a resident of the country.

How Can I Prevent Real Estate Wire Fraud? 3 Trusted Tips for Protecting Your Clients

The home buying process is filled with many twists and turns, especially for the uninitiated. Sure, helping your clients view houses and properties to find the perfect one is lots of fun, but it’s easy for them to get overwhelmed by all of the financial details. This is especially true with all of the actual money involved, as many people get nervous when it comes to transferring large sums to people and institutions they don’t really know. And those nerves are understandable when you consider the possibility that wire fraud can occur when you least expect it.

At Patten Title, we are committed to helping you as a real estate agent help your clients avoid the traps and pitfalls of wire fraud. With our three time-tested prevention tips, you can rest assured that your clients’ funds will get where they need to go so they can buy the home of their dreams.

What Could We See in 2020? Analyzing 5 Essential Real Estate Trends

Happy New Year! While a “trends” article isn’t a new concept, they remain a popular way to share thoughts, ideas, and information about what’s happening in a given industry, especially one as fast-moving as real estate. To help you prepare for what 2020 holds, we want to present our thoughts and insights about developments in our industry. Any real estate professional worth their salt knows exactly how important it is to be on top of what’s happening. A lack of insight – whether real or perceived – can quickly lead to decreased sales and your competition swooping in to take over your sales area. We’re going to pay special attention to market activity so real estate agents, buyers, and sellers can better determine the types of moves and transactions that will be worth their investment and attention.

 

Common Closing Costs For Buying a Home

When you’re investing in a new property, a buyer’s closing costs include a number of fees and charges you should be prepared to pay leading up to and upon closing. Buyers can expect to pay between 2 and 5 percent of the total home cost. For a home being purchased for $150,000, you can expect to pay between $3,000 and $7,500 in average closing costs. To help you understand where that money goes, we’re breaking down which tasks and fees are covered in the average closing costs for buying a home.

When You Should Let Tenants Break A Lease

One of your primary goals as a real estate investor and landlord is to create stability with your tenants. Frequent turnover takes money out of your pocket. While the ideal tenant will sign a minimum lease of one year and want to stay beyond that initial period, there are moments when tenants want to break a lease, or move out before the agreement expires.

4 Ways To Find And Buy Off-Market Houses

A competitive real estate market naturally makes it harder to find good deals on investment properties. Whether your concentration is commercial, single-family homes, or multi-unit structures, having a few real estate tricks up your sleeve can help you avoid competition that can drive the price beyond what you’re willing to pay. Buying an off-market property means you spend less time and money fighting for a property.