It is a wise idea to buy cash – it is almost impossible for non-resident particulars or newly created companies to obtain a credit from American banks, as they have adopted an extremely conservative strategy in order to avoid the errors from before the crisis, namely to grant credits to everybody.
It is preferable for tax reasons that this cash purchase is made through a perfectly adapted legal structure, a LLC (“Limited Liability Company”), registered in Florida. This legal structure is created from our law office.
The creation, management and domiciliation of this structure can be fully coordinated by our management company KPL MANAGEMENT (prices on request).
The investor will thus be able to amortize the asset and deduct all charges, including airline tickets, hotels, car rental, etc., through its structure(s). This will allow him to minimize the tax on rental income that he will declare in his country of tax residence.
A FAR BAR (Florida Bar) purchase contract will be established on behalf of the new legal structure of the investor and will detail the obligations of both parties relating to the sale/ acquisition of the property and will then be forwarded to the office « Settlement agent » (usually a lawyer specializing in real estate law, the equivalent of a French notary).
The overall cost of transmission and acquisition costs (transmission costs) amounts to approximately 2.8% of the purchase amount.
The physical presence of the purchaser is not necessary for the achievement of the sale.
The transfer of the property is conditioned by the presentation of a due form property title (“marketable title”), free of any encumbrance (servitude or mortgage), legal defects (e.g.: non-compliance of building permit) and will not only be checked by the lawyer but also guaranteed by a title insurance for the buyer’s own benefit (cost included in the transfer charges).
The act of transfer will then be registered and officially deposited with the department Court (County Court house – public records).
We only publish these data on a purely informative basis.