If your seller is international does it say so on original contract signed?

[LilyJC]

We are leaning this way. We do really like it. But I just wish the broker wasn’t so secretive about it. Makes me nervous.

Fidelity was our broker when we were “surprised“... I think some brokers choose not to disclose because they’re likely to get more lowball offers on those contracts with international sellers. We also had First American which was not ideal. Everything eventually worked out, and we haven’t had the IRS knocking at our door

 

[we"reofftoneverland]

What country?

Canada

 

[MICKIMINI]

I've bought three contracts from Canadians. They were all a piece of cake and no problem other than getting the reference info from the IRS which I didn't expect. I didn't have to do anything different and they were quick turn arounds.

 

[we"reofftoneverland]

I've bought three contracts from Canadians. They were all a piece of cake and no problem other than getting the reference info from the IRS which I didn't expect. I didn't have to do anything different and they were quick turn arounds.

That’s good to hear! So is the information you receive from the IRS just a statement saying you would owe ____ if it had not been paid?

 

[we"reofftoneverland]

Fidelity was our broker when we were “surprised“... I think some brokers choose not to disclose because they’re likely to get more lowball offers on those contracts with international sellers. We also had First American which was not ideal. Everything eventually worked out, and we haven’t had the IRS knocking at our door

This is us except Mason title. Lol. The crazy thing is we originally wanted to buy riviera direct which would have been really easy, but we couldn’t move past the resale restrictions. We have other contracts and have no intention of sellIng any of them but we kept coming up with crazy scenarios— like what if one of us dies and the other one wants to sell? Awful to think about, but you would not lose anything on a resale contract.

 

[Cyberc1978]

All contracts I have received have stated the sellers last name and city and country. One of the recent purchases was from a Canadian (my 3rd no big deal) but the broker didn't ever disclose it until I got my contract. I didn't appreciate that.

Call your broker to clarify because you will have to report your SS# for the IRS if it is a foreign seller in case the seller doesn't pay their taxes. The first time I received a copy of the taxes due FROM the seller I nearly flipped as it was addressed to me from the IRS for thousands of dollars and I thought we owed that. It's not worth a heart attack!

There is nothing to be worried about.

the title company will ensure that the firpta tax is withheld and paid Before seller receives a nickel

or at least a reputable title company will, can’t say that all will, but the most used brokers wouldnt want to have any problems or bad PR so they will ensure together with the title company that the tax is paid.

 

[LilyJC]

This is us except Mason title. Lol. The crazy thing is we originally wanted to buy riviera direct which would have been really easy, but we couldn’t move past the resale restrictions. We have other contracts and have no intention of sellIng any of them but we kept coming up with crazy scenarios— like what if one of us dies and the other one wants to sell? Awful to think about, but you would not lose anything on a resale contract.

Well you are at an advantage having Mason for sure! We just closed a contract with them last week (broker DVC Store), and we thought they were pretty competent. Also, our international sellers from a few years ago were in Japan which also made things interesting....

And yes, direct is definitely way easier/faster, but we certainly prefer resale prices! Good luck with your purchase! I do think you’ll be good to go with Mason Title and a Canadian seller!

 

[MICKIMINI]

That’s good to hear! So is the information you receive from the IRS just a statement saying you would owe ____ if it had not been paid?

It was and actually we got two, one regarding each contract last year. I'm expecting to get one soon from one of the contracts I bought this summer. Now that I know what it is and the fact that the same closing attorney has done all our Canadian contracts I'm fine with it. If you like the contract go for it. You know it takes forever to find the right ones!

 

[RoseGold]

So, unfortunately it does not say on our contract. All it has is the seller’s last name. However, I did
just find out from someone in the broker’s office that the seller is international. Ugh. We have not signed the contract yet. I am on the fence now. We really want the contract, but we really hate the IRS.

Shady behavior. Unless it's an exceptional contract, I'd be walking away. Resale market not great right this moment anyway.

 

[we"reofftoneverland]

Shady behavior. Unless it's an exceptional contract, I'd be walking away. Resale market not great right this moment anyway.

That is how I feel too but dh wanted to go for it. So we will see what happens. They already told us to expect at least 45 days on ROFR and another 4-6 weeks to get points loaded.