How to WRITE a HOME IN THE UNITED STATES? (US Notary Public) [#2]

A frequent question from those who are looking for how to buy a house in Florida is how to deed a house in the United States.

In this article we will show you what are the forms of property deeds for foreigners and how the deeds further protect your assets.

But before showing you the ways to deed a property in the United States you need to understand what a Tittle Company is and what it does.

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What does the Tittle Company do?

The Tittle Company is the company that ensures that the title to a property is legitimate and then issues title insurance for that property.

It studies the history and surveys all legal information regarding the property before issuing a negative certificate.

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Having the Tittle Company in the process of buying a property makes the transaction even safer.

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This action prevents the purchase and sale transaction from being made with any outstanding license or pendency, protecting the lender and/or owner from any lawsuits or claims against the property that result from disputes over the title.

Title companies also often maintain custodial accounts - which hold the funds needed to purchase the property - to ensure that this money is used only for settlement and closing costs.

At closing, when the contract is signed, a Tittle Company settlement agent will present all necessary documentation, explain every detail to the parties involved, collect closing costs, and distribute the money.

Finally, the Tittle Company will ensure that the new titles, deeds and other documents are filed with the appropriate agencies.

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Buying a home in Florida as an individual or legal entity?

In the process of buying a property you need to understand very well what is the best way to deed it.

You can deed a home in Florida as an individual and as a business entity.

When you buy from the legal entity, you get to reduce more expenses from your tax return, like the case of maintenance, accountant cost, travel cost.

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Difference between buying a house in the individual or legal entity.

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The second point is in case you want to rent your property, you end up protecting yourself more from possible eventualities that may happen with your tenants.

If someone is injured in the home, if something happens to the structure of the property, you are not directly responsible for what happened.

You protect yourself and other assets in your estate.

The third point is the succession fee. In the event of the death of the owner and the transfer to the heirs, a fee is charged for this succession.

When the property is bought in the name of an individual the percentage of the tax is progressive and can cost up to 40% of the value of the property.

When you buy in the legal entity you end up minimizing these costs.

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Fourth point is the collection of FIRPTA.

FIRPTA is a tax law that imposes a tax levy on foreign nationals who make a profit from the sale of goods in the United States.

If you generate income here in the United States you need to file income tax returns.

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As a legal entity you have several benefits to buy a home in Florida.

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FIRPTA collection was created because many foreigners would sell their property, put the money in their pocket and leave without declaring the taxes.

Then, the American government created this law, which at the time of purchase collects 15% of the value of the property as a way to ensure that the proper taxes were paid.

This percentage is much higher than the tax paid on the profit, which obliges the foreigner to provide information on whether he gained or lost from the negotiation of the property.

If you lose capital, the 15% collected is refunded and if you gain capital a calculation is made for fee collection and the difference is returned.

This was a simple and safe way the U.S. government found to keep all real estate investors in good standing with their tax obligations.

This law only applies to purchases made as an individual, meaning it does not apply to foreigners buying homes in Florida as a business entity.

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