What does a BUYER need to know about purchasing an International contract?

[perchy]

Disney tends not to buy them. What does it mean if a regular buyer wants one? Any surprise fees? Longer close time?

What's the caveat that Disney tends to steer clear?

 

[_auroraborealis_]

Definitely longer close time.

 

[Sandisw]

And you need to make sure that the title company takes care of the tax international owners need to pay.

Its usually not a problem, but sometimes it is and you will get a notice from the IRS. In that case, you have to contact the title company back and they will get it taken care of for you.

But, it’s something that doesn’t happen when buying from a US buyer.

 

[CaptainAmerica]

Definitely longer close time.

Especially now. I bought from a Canadian seller and whatever Ministry office they had to go to (basically their version of a Notary Public, I think) was on a super-limited schedule due to COVID. I think they were only open for 20 minutes once a week by appointment only or something obscene. Added a few weeks just to get the papers signed.

 

[mort1331]

Especially now. I bought from a Canadian seller and whatever Ministry office they had to go to (basically their version of a Notary Public, I think) was on a super-limited schedule due to COVID. I think they were only open for 20 minutes once a week by appointment only or something obscene. Added a few weeks just to get the papers signed.

LOL,,,I am Canadian,,,,no issues here unless they live in a remote area...Just lazy....I have bought and sold no issues.

 

[CaptainAmerica]

LOL,,,I am Canadian,,,,no issues here unless they live in a remote area...Just lazy....I have bought and sold no issues.

I closed right at PEAK covid.

 

[DisneyMusicMan]

I’m in the process with an international seller. Just closed today, 45 days after making my offer. Obviously, that included ROFR, returning closing docs, wiring funds, etc. I think the seller is in Canada. No issues. Actually, it all moved quite quickly.

I did ask the title company to provide me proof of the tax holdback, in case the IRS contacted me at a later date. Something like a letter for proof, etc.

Otherwise, no hidden fees or anything like that.

Bottom line, less likelihood of a buyback through ROFR, but potential for longer closing and an additional step the title company takes with the IRS (that you need to make sure you have proof of).

 

[Bearval]

Disney tends not to buy them. What does it mean if a regular buyer wants one? Any surprise fees? Longer close time?

What's the caveat that Disney tends to steer clear?

I believe I had to provide my social security number. But i did get a full contract for AKV 100 points at $105 per point dec 2019 for a June UY which is what i needed to match my existing contract.

 

[jbreen2010]

If you’re buying this with a reputable title company, they will handle any foreign withholding necessary. From what I’ve heard not a big deal if you’re the buy just might take a little longer to close

 

[DisneyMusicMan]

I believe I had to provide my social security number. But i did get a full contract for AKV 100 points at $105 per point dec 2019 for a June UY which is what i needed to match my existing contract.

That’s right. We had to provide SSN’s for the IRS. In the off chance the title company doesn’t do their job correctly, and doesn’t send the international seller’s tax withholding to the IRS, then the IRS will contact you directly.

 

[RoseGold]

This is a paperwork issue, but it's also a liability issue. You are responsible to the IRS for handling this correctly. I passed because I didn't know enough to even know if the title company had done it correctly. This wasn't worth it to me for the one contract I considered.

Also, make sure the seller is responsible for the extra cost of handling this. Some of the horror stories are the buyer having this unexpected cost.

https://www.disboards.com/threads/buying-from-international-seller.3674706/

 

[Jimmy Geppetto]

LOL,,,I am Canadian,,,,no issues here unless they live in a remote area...Just lazy....I have bought and sold no issues.

I laughed at this too since I’m also Canadian. We can go into any Ministry of Transportation office to get a notary or even visit any lawyers office. The most they charge is $50.

 

[Wakey]

From a UK perspective there is no reason for any delay in closing. This is a fallacy from the UK perspective. It just depends how quickly the seller gets to the local notaries office to get the document notarised.
Any of the closing companies used by the big resale agents should deal with tax withholding.
Big plus is that the contract likely won’t be ROFR, which is the big time saver.

 

[Bearval]

From a UK perspective there is no reason for any delay in closing. This is a fallacy from the UK perspective. It just depends how quickly the seller gets to the local notaries office to get the document notarised.
Any of the closing companies used by the big resale agents should deal with tax withholding.
Big plus is that the contract likely won’t be ROFR, which is the big time saver.

When I bought my AKV contract I had no idea that it was from an owner in the UK. I only found this out when I was informed for closing I would need to provide my SS number because it was an international contract. Closing went really fast after DVD passed on their ROFR.

 

[perchy]

When I bought my AKV contract I had no idea that it was from an owner in the UK. I only found this out when I was informed for closing I would need to provide my SS number because it was an international contract. Closing went really fast after DVD passed on their ROFR.

So I guess when I do my taxes for 2021 I need to somehow show that I made this purchase and that the taxes were taken care of?