Are there any restrictions for Canadian buyers purchasing a home in Arizona?
There are no US restrictions preventing foreign nationals from buying property in Arizona.
Can I obtain financing to buy Real Estate in Arizona?
Yes, financing is available to buyers without a US Tax ID number; however, there are only one or two banks currently offering loans to such borrowers. The minimum requirement is 30% down payment. Interest rates fluctuate based on the market, not your citizenship.
If you plan to pay cash please check –> Today’s value of the Canadian Dollar (click for a live market quote) to help understand how much Canadian currency you will need to convert to US Dollars.
Typically, buyers do not use Attorney’s to process our real estate purchase and sale contracts. However, you are always welcome to talk with attorneys, CPA’s and financial advisers.
You will also most likely pay for a home inspection, termite inspection, the escrow (title) fees, title insurance, recording fees, property taxes and homeowner’s insurance.
Arizona does not have a real estate transfer tax and the Sellers pay for all real estate commissions. Buyers do not pay a commission on top of the purchase price.
How do I make an offer?
After you decided you want to make an offer, you sit down with your agent and fill out an AZ Real Estate purchase contract. The contract indicated offer price, closing of escrow (possession date) , earnest money deposits, inspection contingency and other buyer protections, privileges and rights. It is crucial that you have an experienced real estate agent who knows the ‘ins and outs’ of the contract and its fine print and spends the time with you to go over it line by line.
What is an Earnest money deposit?
When you make an offer the agent must present the contract to the seller with a copy of an earnest money check , not the actual check. We do not require a cashier’s check or wired funds until we have mutual contract acceptance; at this time you would open escrow by depositing such funds (typically 1% of offer price) with a title and escrow company.
Is earnest money refundable?
Please note that earnest money is refundable for a variety of reasons if the contract is written properly. One of the refund provisions is outlined in your buyer right to Inspection, which includes a physical inspection and many other recommended areas of inspection. If for some reason, you find something that you were originally unaware during this 10-day period Inspection Period, you can cancel the contract and get a full refund of your earnest money. (page 6, section 6j, lines 234-236)
What are Escrow and Title companies?
In AZ we use Title and Escrow companies to act as an intermediary to process paperwork and manage monies. The seller purchases a title insurance policy for the buyer to guarantee good, clean title. Make sure you inquire about an extended policy!
What are property taxes in Arizona?
Each city and county will vary slightly, but taxes are usually around .8 to 1.5% of the assessed value of the property. A good rule of thumb is between .6% to .8% of sale price. For example, a $200,000 home in Fountain Hills, AZ would have (approx) $1,400.
Are Canadian buyers subject to capital gains tax when their Arizona property is sold?
The foreign Investment in Real Property Tax Act (FIRPTA) imposes a U.S. tax on income and gains from real estate owned by “non-resident aliens” at the same graduated rates applicable to U.S. persons. It is recommended you consult with an accountant or lawyer for more details.
Can I lease my property out when not in use?
YES!! If your property is located within a Home Owner Association Community, you will need to review your Covenants, Conditions and Restrictions (CC&R’s) to determine the length of time you want to lease your property and assess any restrictions.
What are HOA’s ?
Much of Arizona was developed in mater-planned communities, which are managed by Home Owner Associations (HOA) . Fees can range from $20/monthly to several hundred depending on the area, amenities and type of community. Make sure you and your real estate broker go over the covenants, codes and restrictions (CC&R’s) which are provided by the title company when you open escrow. Please look at financial health, governing rules, by-laws, fees and we encourage you to call the HOA president and introduce yourself to get a sense of the community.
Contact Us today!!
Our team has combined experience of 50 years selling homes to Canadian buyers and investors;
Call Daniel (480) 200-9097 or Kellen (480) 298-0133 to see how we can help you find a great home at and even better price.