How many times have you heard of people who go to a tropical paradise and get wooed into buying a piece of real estate and then come home to repent? Perhaps the money disappeared or what was promised was not what was delivered. Or perhaps this has happened to you. You bought a cottage in the tropics and came home to discover it was not as advertised. When it comes to buying foreign real estate, there are many factors that need to be considered. It’s essential to consult a lawyer before making a foreign real estate purchase. Let’s take a look at four essential questions you need to ask before you make your purchase, and how your lawyer can help.
What Is The History of Ownership of the Property?
This is the very first question you need to ask. When you go on holiday, people see you relaxing and enjoying yourself. Inevitably, someone pops up and talks you into viewing a piece of property that will ensure you have your own piece of paradise available anytime. You’re intrigued. Before making a purchase, it’s essential that you ask: What’s the history of ownership of the property? Who’s owned it in the last twenty to fifty years? This is where you might want to consult a lawyer. Different countries have distinct guidelines on ownership, and in certain areas ownership is complex as land may be owned by groups or tribes rather than an individual. Understanding who owns a property will let you determine if the person you’re speaking to is really empowered to sell it.
Is the Deal Legit?
The property might be right for you, but is the deal legitimate? Is the person who is dealing in the property the owner of the same? Does he have the right to sell this property? You might be meeting a nephew selling off his uncle’s home while the uncle is traveling. Do you want to take that risk? It’s always best to meet with the owner of the property, as per the listing in the local center of deeds. Even then, consult an attorney to verify that all aspects of both the property document and the proposed transfer are in order.
What Are The Restrictions for Foreign Ownership?
Many countries have restrictions for foreign ownership. You don’t want to be induced into buying a house that you’re not allowed to buy. Not only will you lose your money, you might also be up on criminal charges. Why take the risk? When on an excursion to a foreign country to buy property, make sure you pay a visit to a real estate lawyer so you can find out everything about the restrictions for foreign ownership. It’s also important to consult a US lawyer before making a foreign real estate purchase to get another perspective.
Is the Buying and Owning Within Your Budget?
Sometimes buying and owning are two different things altogether! You might have budgeted for the cost of the property and forgotten to take into account all the expenses that come with owning a property in a foreign nation. You might have to settle some local tax obligations, look into security issues and more.
So if you’re all set to buying foreign real estate, make sure you get a lawyer to look at it first and advice you on whether to go ahead with the purchase or not. You won’t regret spending the extra time to be diligent.
About the author: Rica Garcia is a real estate specialist who helps clients find their dream homes throughout the Caribbean and Latin America.
