United States — Property: Legal Checks

Why this matters

Understanding these checks is crucial for international property buyers to avoid costly errors and ensure compliance with U.S. laws.

Key facts

• Lenders usually require a lender title policy, which covers only the loan amount; the owner policy is optional and protects the buyer if a title issue causes loss and can require the insurer to defend title.
• Typical defects are a previous owner failure to pay taxes or claims from contractors who say they were not paid.
• Title services can usually be shopped separately from the mortgage, and using the same provider for both policies usually costs less; the CFPB cites possible savings of up to USD 500.
• Some insurers sell an enhanced owner policy whose coverage grows as the property appreciates.
• Property law is state law, so requirements for surveys, inspections and closing agents vary by state.

Steps

1. Step 1: Research State-Specific Requirements — Determine the specific state's laws and regulations regarding foreign property ownership, including any necessary permits or licenses.
2. Step 2: Engage a Qualified Real Estate Attorney — Work with an experienced attorney who is familiar with international property transactions and can guide you through the legal process.
3. Step 3: Obtain Required Documents — Gather necessary documents, such as a valid passport, proof of identity, and any required visas or permits.
4. Step 4: Complete the Purchase — Follow the state-specific process for buying property, which may involve working with a title company or other professionals.