FAQ about buying and renting real estate in the USA

Can foreigners buy property in the US?

US law does not restrict foreigners. Citizens of any country can freely buy any objects. Foreign buyers can become owners of both residential and commercial real estate in the States. No special permission to purchase is required.

You can make a deal both for an individual and for a legal entity. A purchase for a legal entity may turn out to be more favorable, because. it is possible to protect real estate from inheritance and gift taxes, as well as limit the liability of the owner in case of an accident.

A residence permit in the US through the purchase of real estate

The acquisition of real estate is not a sufficient basis for obtaining a residence permit in the United States. Nevertheless, under certain conditions, it will help to obtain a business visa.

Thus, an investor has the right to obtain a residence permit (another name: Green Card) under the EB-5 program. The program has many advantages: the risk of being denied a residence permit is minimal, it is not required to pass a language test, the investor and his family are allowed to work in the country.

Investment conditions:

The applicant may invest in the business on their own or through the Regional Center.
The applicant must invest at least $1.05 million in a new or existing business or Regional Center project in any US state. Alternative option: the applicant invests an amount of 800 thousand dollars in a project located in a rural area or in an area of high unemployment.

The investment must contribute to the creation of at least ten full-time jobs for skilled workers.
The business must be profitable.
The applicant must be able to prove the legality of the origin of the funds and not have problems with the law.

Benefits of the EB-5 Program (Residence by Investment):

The first residence permit is issued for two years. Then, if the conditions of the program are met, the residence permit is issued for life.
Five years after obtaining a residence permit, the applicant has the right to apply for citizenship.
The spouse of the investor and unmarried children under 21 are also eligible for a residence permit.

Unlike other immigration programs in the United States, the applicant does not have to pass language proficiency exams, meet the requirements for age, education, business experience. A citizen of any country has the right to apply for a residence permit.

Additional costs when buying real estate in the USA

At the conclusion of the contract of sale, the parties agree on who bears what costs. Buyer's closing costs typically include attorney's or title company fees, general property insurance, registry and court fees.

Without a mortgage, they amount to about 1-2% of the transaction amount.

The services of a broker cost 4-6% of the property price and are usually paid by the seller.

Payment of the property transfer tax (0.01–2.00% of the transaction amount) is usually also the responsibility of the seller.

Object insurance. Real estate is insured at their own choice, however, in some cases, insurance is required under the terms of the transaction. First of all, it concerns mortgages.

Lawyer's fee. Mandatory item of expenditure. The stakes are usually in the range of $1000 to $1500.

Notary fee. The participation of a notary in the United States is optional, since every lawyer has the right to certify documents.

Translation fee. If the buyer does not know English, then all documents (purchase offer and contract) must be translated by a certified specialist. The cost of translation is about $20 per page.

Duties and fees

Usually, when buying a property, they pay:

title verification fee - about $200;
real estate taxes to the city and county for two months - their total rate for the year is 1-2% of the value of the property.