Foreign Buyers

Whether you are looking for pied-a-terre above the Sunset boulevard, vacation beach home with incredible sunset views or estate in exclusive neighborhood - you could not have picked a better time and better city. Los Angeles has something unique to offer for every taste and at historically attractive prices.

Purchasing real estate in unfamiliar market might seem confusing at first so we answered below just a few frequent questions asked by our foreign clients. For any inquiries please contact us by entering your information in the form on the right.

Foreign Buyers FAQ's

• Do I need an agent if I am looking to purchase property in California?

Almost all properties for sale in California are sold by sellers represented by their agents. Sellers agent has a fiduciary duty to his client - the seller, not you. Sellers agent is interested in selling property at the highest price for his client. That leaves you somewhat at disadvantage. It is always a good business sense to have an agent that represents you in the transaction and negotiates on your behalf to get the best price and property for you.

• How much do I need to pay my agent to find the right property for me?

To you, (the buyer) it cost nothing to use services of an agent that represents you. Sales commissions are paid by the seller, therefore our services to you are FREE.

• Can I get a loan in US to finance my purchase?

By paying cash for your property has many advantages but if that is not an option for you we can refer you to the lender that makes mortgage loans to foreign buyers.  Terms and lending criteria varies from lender to lender, but usually loans to foreign nationals require higher down payments (can be as high as 40%), higher cash reserves (as high as 12 months of mortgage payments, taxes and insurance) and can have loan amount limit (ie $2,000,000 maximum). Pick lender that explains to you lending program in terms you clearly understand.

• Can I buy without visiting the US?

Yes you can. This practice is not uncommon. You can issue Power of Attorney (POA) to your representative here in US that can close transaction on your behalf. Please note, that if signing POA outside the US, the signature on the Power of Attorney must be notarized by an approved official. In many cases, the only approved notary will be in the local U.S. embassy.

• Will I pay taxes here in US when I sell?

Federal tax on long term investments (holding property for over a year) is 15% for US residents and 30% for foreigners.

For foreign national selling property in the US - there is an automatic FIRPTA withholding - 10% of sale price.
California withholding is - 3 1/3% of sale price.
We strongly advise you to consult with accountant well versed in real estate matters as these withholdings might vary based on number of individual criteria.
Here is a link to more general information on FIRPTA withholding and exemptions.

•  Can I buy a business and real estate with it?

Yes you can and we can help. In fact, in 2014 over 15,500 businesses were sold in California alone. We can help you to locate the business that matches your criteria, assist you with due diligence and negotiation. Depending on transaction complexity might be necessary to assemble team of professionals (accountants, attorneys, experts in the field) to facilitate smooth transaction.
In fact business purchase might be considered for Investor Visa and legalized US immigration status for you and your family. We can refer you to the attorneys familiar with immigration and investor visa matters. Here is a link for more INS information on the Investor Visa requirements.

First American Title Company put together pretty informative guide for Foreign Buyers on title related questions that you can find by clicking on this link - California Foreign Buyers Guide.