Anyone buy resale from an international seller?

[skyywalker]

What was your experience? I was told that closing could take an extra week or so because they have to go to a US embassy to have it notarized. I'm trying to buy a contract out right from someone in the states at the moment. I turned my paperwork in nearly two weeks ago and the seller has yet to turn in their signed contract. I'll give them another day or so before I move onto another contract but I'd like to know your experience with international sellers in case I find a international contract that matches what I want. Thanks!

 

[disneynutz]

Based on posts here on the DIS, I wouldn't buy from an out of country seller. Too many things can go wrong and I wouldn't want the aggravation and additional delay.

Bill

 

[pangyal]

Can you find out where they are? If they're Canadian, it is quite easy to find a notary who is acceptable by Disney to get the documents done.

 

[skyywalker]

I'll try to find out tomorrow where the international seller is from. I'm thinking that if the seller for the contract I'm currently interested in still hasn't turned in their signed contract by tomorrow I will move on to this international contract.

 

[rickste]

I am in the process of buying from an international seller and to be honest I would never recommend it.
Here is my timeline:
3/26 offer was accepted
4/1 sent to Disney (talk about cutting it close)
4/26 passed ROFR
5/20 received closing docs (signed and sent back that night)
6/6 Seller finally had first appointment to sign docs
6/14 Seller Documents was not signed correctly so round 2.
6/19 Documents recieved at title company
6/22 Recorded with the county
7-- Still waiting for my freaking member number... Based on what other people are posting I would think it would be later this week.

Never again... Granted some of this might be the people involved as it was not a priority but still. Why add more risk to an already drawn out process. I would negotiated for a lower price and a penalty for not promptly returning paper work.

 

[Raul]

they have to go to a US embassy to have it notarized.

Do you think documents can only be notarized by a US embassy member??

Just read the 100 pages of the "Closing Time" thread and look for people having problems with international sellers and people having problems with someone in the US.

 

[Michal Holm]

As a international buyer, I don't get why people would not recommend buying from someone like me

First as a international buyer, I don't need to go to no embassy to have the contract notarized. I have just signed the contract like everyone else, print, sign, scan, email back. End of story(takes maybe 5min) That does not cause ANY time delay whatsoever.

I do however acknowledge that if you buy from an international seller you need to withhold 15% of the transaction total, because of firpta law in the US. Those funds need to be paid to the IRS, the seller can then request the IRS to have them refunded. The closing company should be able to help you with paying the IRS.

The firpta law is the only actual downside I see from buying from an international seller, and since the closing company should be able to help you - it should be straight forward.

The actual hassle would be for the seller to reclaim the 15% from the IRS - but that has nothing to do with the buyer as long as he or the closing company has transferred the 15%.

Regards.

 

[skyywalker]

I actually figured 3 months was typical from the time the offer was made until the time you receive your membership number. Two weeks ago I decided to purchase a contract out right because I liked that it was a loaded contract and I felt the price was fair. Two weeks later and I'm still waiting on the seller to turn in their paperwork so it can be sent to Disney for RORF. Also I'll check out the post Raul was talking about.

 

[CMNJ]

I think delays can vary based on where the seller is located. As @pangyal said it can be very easy in Canada to get a US notary. Overseas that is not necessarily the case. As the broker told you they have to go to a US embassy which could be several hours from there home. Also my understanding is that they have to make an appointment to see the notary at an embassy so that could also possibly delay the closing thing. I know @michaelholm did not have to go to a US notary but when we were going to buy from an international seller (specifically Australian) we were told both by the broker and the title company this information (so it appears not all title agencies would notarize documents not in person). OP if the price/contract is exactly what you want and you don't mind the potential delays it may not matter to you. As others have said you could have similar delays with a US seller if they aren't motivated or if there are complications (divorce, incorrect information submitted to broker, etc).
Another thing to know is that if you purchase from a foreign seller you have to give your social security number to the title company so that they can can file the necessary FIRPTA paperwork. As the buyer you are responsible for withholding a portion of the sale and pay that tax to the IRS since the seller is foreign. They can then file with the IRS to have that tax refunded but in order for the title company to file all the paperwork on your behalf they have to obtain your social security number. As a cash purchaser this was not information I needed to share nor did I feel comfortable doing so. Also if somehow the FIRPTA is not correctly withheld you are actually the one legally responsible for the tax. It's weird but the IRS holds the buyer legally responsible for withholding and paying this tax (so in the unlikely circumstance that a mistake was made the IRS would be seeking payment from you). Again this may not matter to OP if they are financing as I assume they have to provide their SS# any way.

 

[KAT4DISNEY]

As a international buyer, I don't get why people would not recommend buying from someone like me

First as a international buyer, I don't need to go to no embassy to have the contract notarized. I have just signed the contract like everyone else, print, sign, scan, email back. End of story(takes maybe 5min) That does not cause ANY time delay whatsoever.

I do however acknowledge that if you buy from an international seller you need to withhold 15% of the transaction total, because of firpta law in the US. Those funds need to be paid to the IRS, the seller can then request the IRS to have them refunded. The closing company should be able to help you with paying the IRS.

The firpta law is the only actual downside I see from buying from an international seller, and since the closing company should be able to help you - it should be straight forward.

The actual hassle would be for the seller to reclaim the 15% from the IRS - but that has nothing to do with the buyer as long as he or the closing company has transferred the 15%.

Regards.

Unlike when buying a seller needs to have the documents notarized. It is not just signing them and sending them back as you do as a buyer.

 

[Minniesgal]

We sold 40 points last year and are from the UK. We had our paperwork notorised at the American embassy in Edinburgh the day after receiving it and returned it before the buyers it really was no big deal.

We made the appointment the day we were notified it had passed ROFR for 3 weeks in advance which worked. It all works fine if you have sellers who are organised. Which can be said for any sellers anywhere. Disorganised US sellers hold things up too. I think delays are more to do with the nature of the people than the location.

Now what would have held things up is 2 days after we were notorised I had to go on a 2 week business trip so if the closing papers had been 3 days later it would have been delayed 2 weeks until I got back. Again this could happen in the US as well.

 

[Michal Holm]

Unlike when buying a seller needs to have the documents notarized. It is not just signing them and sending them back as you do as a buyer.

If a seller decides to sell, would it be an option to have the deed signed and sent back upon decision to sell. This way the broker have the signed deed and can notarize it. Once a buyer comes along this would have speeded up the process, because the deed it already signed.

Regards

 

[montrealdisneylovers]

We are Canadian and purchased no problem. Two years ago we added our daughters to the deed which was like a sale and repurchase. We had to have our signatures notarized by a US notary. I was surprised and happy to learn that UPS outlets in the US qualify. A simple drive to Vermont and it was taken care of in 10 mins at a fraction of the cost of going to the US embassy. The added bonus; we used UPS services to return the documents. Don't lump all International sellers into the same pot. As stated before a lot depends on their character and where they are located.

 

[Michal Holm]

We are Canadian and purchased no problem. Two years ago we added our daughters to the deed which was like a sale and repurchase. We had to have our signatures notarized by a US notary. I was surprised and happy to learn that UPS outlets in the US qualify. A simple drive to Vermont and it was taken care of in 10 mins at a fraction of the cost of going to the US embassy. The added bonus; we used UPS services to return the documents. Don't lump all International sellers into the same pot. As stated before a lot depends on their character and where they are located.

Agree, some may need to sell but don't want to, therefore they act slowly or not at all.

Regards

 

[aoconnor]

What was your experience? I was told that closing could take an extra week or so because they have to go to a US embassy to have it notarized. I'm trying to buy a contract out right from someone in the states at the moment. I turned my paperwork in nearly two weeks ago and the seller has yet to turn in their signed contract. I'll give them another day or so before I move onto another contract but I'd like to know your experience with international sellers in case I find a international contract that matches what I want. Thanks!

I just closed from an international seller last week. They were located in the UK and it only took maybe 4 days longer (max). Once the closing docs were sent out they got it notarized the next day and mailed it to the US, which took about 5 days.

As others have said it really depends on WHO the seller is not where they are. A domestic seller might wait two weeks before sending the contract back in. As long as an international seller acts quickly to mail things back, it's just a matter of a few extra days of shipping time.

 

[skyywalker]

Thanks again for all of your input. I have another question... My seller is in the United States. Do they have to get it notarized before submitting to the broker to be submitted for rofr? Or do they only get it notarized before closing? I'm just trying to figure out what's the hold up on my current seller and how much longer should I give them.

 

[KAT4DISNEY]

If a seller decides to sell, would it be an option to have the deed signed and sent back upon decision to sell. This way the broker have the signed deed and can notarize it. Once a buyer comes along this would have speeded up the process, because the deed it already signed.

Regards

If I recall correctly the info that is on the documents that require a notary probably can't be done prior to reaching that step in the process.

 

[KAT4DISNEY]

Thanks again for all of your input. I have another question... My seller is in the United States. Do they have to get it notarized before submitting to the broker to be submitted for rofr? Or do they only get it notarized before closing? I'm just trying to figure out what's the hold up on my current seller and how much longer should I give them.

Not normally as I recall. Notary isn't required until the closing documents although different title companies might have different requirements but that shouldn't be on at the sales agreement point. As to what is the hold up? Might be something as simple as it's summer and on vacation? What you could do is reach out to your broker and tell them that you will give the seller until XX/xx date and if they have not returned the signed sales agreement that you recind your offer and want to find a different contract. Or have you followed up with the broker on what the issue is?

 

[skyywalker]

I did follow up with the broker. The broker contacted the seller over the weekend and seller said they were on vacation last week. Today is day #14 which I think I've given them plenty of time. I will call the broker during lunch to cancel this contract and purchase from a UK seller that has the same number of points for a slightly cheaper price. Maybe the seller in the UK will be a little more motivated.

 

[rickste]

I did follow up with the broker. The broker contacted the seller over the weekend and seller said they were on vacation last week. Today is day #14 which I think I've given them plenty of time. I will call the broker during lunch to cancel this contract and purchase from a UK seller that has the same number of points for a slightly cheaper price. Maybe the seller in the UK will be a little more motivated.

Good Luck! Like others have said it does have more to do with the sellers and delays and mistakes in the paperwork can and will occur regardless of location.