International Seller

[disneyfam07]

We are considering buying into DVC after a long researching process. We have came to the conclusion that resale is our best bet. We have found a contract that would match our needs but it is an International seller. Has anyone had problems buying from International Sellers? Also, I am 50 years old, am I crazy for buying at my age?? I am perfectly fine with the 2042 contracts. I have been back and forth with this decision based on my age.

 

[disneynutz]

International closings can take longer and the seller may have to go to the US consulate and a Federal tax has to be paid.

Bill

 

[disneyfam07]

International closings can take longer and the seller may have to go to the US consulate and a Federal tax has to be paid.

Bill

 

[disneyfam07]

Who pays the taxes? Buyer or Seller?

 

[andycat]

We are considering buying into DVC after a long researching process. We have came to the conclusion that resale is our best bet. We have found a contract that would match our needs but it is an International seller. Has anyone had problems buying from International Sellers? Also, I am 50 years old, am I crazy for buying at my age?? I am perfectly fine with the 2042 contracts. I have been back and forth with this decision based on my age.

That puts you at about age 75 when the contract expires. I don't know about you, but I hope to still be running fairly strong at that age! I'm curious as to what kind of contract you're looking for that there appears to only be one seller. Or is it just that the price is lower/lowest? If so, the seller may be tacitly acknowledging that the international closing process will be a bit more involved.

 

[disneyfam07]

That puts you at about age 75 when the contract expires. I don't know about you, but I hope to still be running fairly strong at that age! I'm curious as to what kind of contract you're looking for that there appears to only be one seller. Or is it just that the price is lower/lowest? If so, the seller may be tacitly acknowledging that the international closing process will be a bit more involved.

It is priced really well and has double points. But I am not sure it will be worth the hassle to deal with a International Seller. I am all new to this so I am obviously clueless. I have done research on DVC but not about International Sellers.

 

[sndral]

The seller pays the FIRPA tax, if any is owed. As long as the title company fills out the tax papers correctly there shouldn’t be a problem.
Ironically, my domestic sellers on my first resale contract took longer to get their paperwork back enabling us to close than my International sellers did on my second contract. The only hold up w/ my International contract was the mail, which took about an extra week. I think how problematic it is for the sellers to get their signatures notorized depends on which country they live in.

 

[Mumof4mice]

Who pays the taxes? Buyer or Seller?

The seller pays the FIRPTA. 15% of the sales proceeds is withheld by the closing company - I would confirm that they are aware the seller is international and will withhold the FIRPTA.

 

[Bing Showei]

The buyer pays the FIRPA tax, if any is owed. As long as the title company fills out the tax papers correctly there shouldn’t be a problem.

Technically, it’s the seller that pays the FIRPTA tax. The tax amount (15% of total sale price) is normally withheld from the proceeds and filed by the title company on the buyer’s behalf (i.e. the money is deducted from the seller’s moneynfrom the sale). The buyer will pay no more than the agreed upon price for a contract.

Should the buyer/title company fail to file the appropriate forms, the IRS will pursue the US buyer for the tax amount due.

 

[suebeelin]

My brother had a hard time with his int’l sellers but that’s bc there were 3 co-owners living in 3 different continents. He eventually got his contract

Good luck!

 

[sndral]

Technically, it’s the seller that pays the FIRPTA tax. The tax amount (15% of total sale price) is normally withheld from the proceeds and filed by the title company on the buyer’s behalf (i.e. the money is deducted from the seller’s moneynfrom the sale). The buyer will pay no more than the agreed upon price for a contract.

Should the buyer/title company fail to file the appropriate forms, the IRS will pursue the US buyer for the tax amount due.

Thanks for correcting that - I typed the wrong party I’ll edit and correct my post if I’m able to.

 

[scot@dvcstore]

in my experience, many times any delays in closing will depend on where the seller is located. Canada or UK may take the seller an extra week or two at the most to get their closing documents notarized. Sellers living in places like South America will generally go to the US Consulate for notary services and that may delay the closing a bit longer. If you see a listing of interest you can always reach out to your broker to get the details on the listing and find out where the seller lives.

 

[Wakey]

There should be no probs buying from a Brit or Canadian. In fact it’s been suggested it’s more likely to pass ROFR.