How is real estate practiced abroad? - Richard Miranda

HAR International CouncilHAR International Council

THINK GLOBALLY WORK LOCALLY

THINK GLOBALLY WORK LOCALLY

International Real EstateInternational Real EstateWhat is an international transaction?

One or both of the principals lives outside the US or are foreign nationals

English is not spoken by one or both of the principals

International Financing

Property is outside of the US

What is an international transaction?

One or both of the principals lives outside the US or are foreign nationals

English is not spoken by one or both of the principals

International Financing

Property is outside of the US

SESSION OBJECTIVESESSION OBJECTIVE

• Provide “snapshot” of a foreign transaction

• Overview of I/O RED Flags

• Be able to set the right EXPECTATIONS for

buyer & seller

• How to take listings (I/O)

• Provide “snapshot” of a foreign transaction

• Overview of I/O RED Flags

• Be able to set the right EXPECTATIONS for

buyer & seller

• How to take listings (I/O)

TWO types of transactionsTWO types of transactions

• Inbound (I)--someone from over there buys here

• Outbound (O)—someone from here buys over there

• Inbound (I)--someone from over there buys here

• Outbound (O)—someone from here buys over there

WHY DO INTERNATIONAL REAL ESTATE?

WHY DO INTERNATIONAL REAL ESTATE?

• Think Globally, Work Locally• Globalization– 2 of 5• Dramatic Increase in DFI-- $56B• Economic Climate• Political Climate• Expand Your Market

• Think Globally, Work Locally• Globalization– 2 of 5• Dramatic Increase in DFI-- $56B• Economic Climate• Political Climate• Expand Your Market

HOW IS IT DONE ABROAD?HOW IS IT DONE ABROAD?

• No MLS—”pocket” listings• No Exclusive Agreements• CMA’s virtually non-existent• Appraisals---very proprietary• Sellers set value• Licensing

• No MLS—”pocket” listings• No Exclusive Agreements• CMA’s virtually non-existent• Appraisals---very proprietary• Sellers set value• Licensing

HOW IS IT DONE ABROAD?HOW IS IT DONE ABROAD?

• Ownership Regulations• Notarios• Contracts—language/format• Title Insurance?• Financing?

• Ownership Regulations• Notarios• Contracts—language/format• Title Insurance?• Financing?

Outbound ListingsOutbound Listings

• What is it? How do you get one?• Contract language & format• Exclusivity• Area 82• Expectations---define your role• Who can close the property?• Co-Brokerage vs. Referral Agreements

• What is it? How do you get one?• Contract language & format• Exclusivity• Area 82• Expectations---define your role• Who can close the property?• Co-Brokerage vs. Referral Agreements

Inbound: “Over Here”Inbound: “Over Here”

• Cultural differences (attitudes, customs, perceptions)

• Language• Setting expectations from the start• Buying habits• Education• Legal issues*

• Cultural differences (attitudes, customs, perceptions)

• Language• Setting expectations from the start• Buying habits• Education• Legal issues*

Inbound Red Flags Inbound Red Flags

• Patriot Act• Executive Order # 13244• SDN• FIRPTA • ILSFDA• AFIDA

• Patriot Act• Executive Order # 13244• SDN• FIRPTA • ILSFDA• AFIDA

Sample SDN List EntriesSample SDN List Entries

FURTHER EDUCATIONFURTHER EDUCATION

• CIPS• TRC• International Risk Reduction• Expand Your Markets• See Handout

• CIPS• TRC• International Risk Reduction• Expand Your Markets• See Handout

AcknowledgementsAcknowledgements

• Magda Knopp• Judith Snively• Ray Holtzapple• Bridget Crowley• Royce Price

• Magda Knopp• Judith Snively• Ray Holtzapple• Bridget Crowley• Royce Price

Richard P. MirandaRichard P. Miranda

• www.mirandarealtors.com• [email protected]• (713) 629-7771• (5255) 5351-2656• (866) 268-0239

• www.mirandarealtors.com• [email protected]• (713) 629-7771• (5255) 5351-2656• (866) 268-0239