Buying 1st Resale Contract - Do I need my own attorney?

[LavaMama]

I'm in the US and we are buying an international seller's contract. I understand the reasons / need for the FIRPTA paperwork and that the title company will ensure the FIRPTA withholding is withheld from the sellers at closing and will require the FIRPTA paperwork the day of closing. Do I need my own attorney to review the closing docs before I sign?

EDIT: Maybe the better question to be asking is, when you bought your resale contracts, did you use or wish you had used an attorney?

 

[AstroBlasters]

I'm in the US and we are buying an international seller's contract. I understand the reasons / need for the FIRPTA paperwork and that the title company will ensure the FIRPTA withholding is withheld from the sellers at closing and will require the FIRPTA paperwork the day of closing. Do I need my own attorney to review the closing docs before I sign?

They are all boiler plate. It’s take it or leave it.

 

[Chili327]

They are all boiler plate. It’s take it or leave it.

In other words.. no you don’t need a lawyer.

 

[AstroBlasters]

In other words.. no you don’t need a lawyer.

That statement might be considered legal advice…. of which I am not licensed to give…..

 

[CastAStone]

What I would say is that the preponderance of people don’t have the closing docs reviewed by an attorney if they are using one of the major title companies.

if it were me, I would have it reviewed by an attorney if there was something I didn’t totally understand reading it myself

 

[CastAStone]

And just to add, I don’t know how it works in the UK, but in the US, private property real estate transactions between individuals almost never involve attorneys unless it’s required by state law.

 

[atthebeachclub]

Read the contract and make sure you are ok with all stipulations. Also make sure the contract states you would be reasonably reimbursed for any missing points, if that situation arose. If it doesn't, you can request a contract modification.

 

[TinkAgainU]

As to FIRPTA, the government forms are at least standardized to read, but as to the Purchase Agreement, those are individually prepared by every Broker and should be carefully read (preferably, before your 10 day right to cancel without penalty). Some purchase contracts are pretty fair, others are brutal as to Buyer penalties, extra service fees, and lack of Broker responsibility for missing points (yes, I'm looking at You! www.fideltiyrealestate.com lol, but a few others are challenging too).

Sadly, some of this is just a bit of a risk - for example, if the points remaining (current or next year) are not there at closing, unless your Broker is both legit and guaranteeing them, your chance of collecting from the Seller for them after escrow has closed and they got all their money, is pretty low - your title insurance should guarantee the Ownership of the points of the contract are transferred, but don't address if the Seller used up a couple years worth already.

This is just my two cents worth, not an Accountant or Attorney, I don't even play one on TV

 

[Chili327]

In other words.. no you don’t need a lawyer.

That statement might be considered legal advice…. of which I am not licensed to give…..

What I would say is that the preponderance of people don’t have the closing docs reviewed by an attorney if they are using one of the major title companies.

if it were me, I would have it reviewed by an attorney if there was something I didn’t totally understand reading it myself

And just to add, I don’t know how it works in the UK, but in the US, private property real estate transactions between individuals almost never involve attorneys unless it’s required by state law.

True, I shouldn't say you don't need one, because truthfully I don't know if they do... but i guess what i should say is, in general most people don't get a lawyer for a resale contract.

 

[VGCgroupie]

Just went through this. I didnt have an attorney look at it. I got the 8288-A form showing me withholding the tax, the title company handled it all. Anything with the IRS makes me nervous though. If it were not a rare contract that tends to have alot of international sellers I would not have moved forward. So if I ever see a normal run of the mill FL resort contract with an international seller in the future I will pass just to not have it weighing on my mind.

 

[geargrinder]

I bought resale from an international seller. It was smooth even with a couple notices from IRS regarding FIRPTA payment. Title company handled everything. No lawyer needed.

 

[MonkeyKnifeFight]

We didn't need an attorney. Our title company had an attorney that handled it. We bought through dvcresalemarket and used magic vacation title at their recommendation. We got a letter from the IRS about FIRPTA and just contacted the title company. They let me know their attorney also received it and are in the process of handling it. They also withheld the full FIRPTA 15% in escrow until these taxes were filed. Then the seller got the remaining amount back.

 

[dvc lover 1970]

I purchased a resale contract from an international seller years ago - I used whatever the company used/recommended and did not do anything extra. I had read, at the time - somewhere, that you should make sure the correct amount of tax is taken out from the seller - so I did ask my agent about that and she informed me that the lawyers/closing attorney handles that. Then I asked if they (agent and lawyer) had done these before and she told me yes - multiple times. Closing was a little longer, but outside of that would never have known it was an international seller if the agent had not told me. That was my experience.

 

[BuzzLightyr]

I didn't use an attorney.

Think about how much one would cost? Say $1000, if you were buying 100 points, that's $10 extra per point. Pricey.

Whats the risk? If the points show up in your Disney account, that's the real transaction. Disney maintains the properties so this isn't a traditional real estate purchase where condition of properties or proration of taxes /utilities matter. Dues split are already negotiated.

Save yourself the lawyer fees. Use a title company you trust. Cammie is highly recommended from many on this board and did my transaction flawlessly.