Foreign Buyer Gudie

8/6/2019 Foreign Buyer Gudie

1/7

2010 First American Title Insurance C

602.685.7000 q www.firstam.com

Foreign Buyers Guide

to Purchasing a home

in Arizona.

First American Title


2/7

W. VALLEY LENDERS ADVANTAGE

623.979.3078 Fax 866.264.7717

A 7200 W. Bell Rd, #D-2Glendale, AZ 85308N of Bell/E side 73rd Ave

ESPLANADE COMMERCIAL CENTER

602.567.8100 Fax 602.567.8101

B 2425 E. Camelback Rd, #300Phoenix, AZ 85016SE corner Camelback Rd/24th St

PERIMETER CENTER

480.342.7030 Fax 866.342.6139

C 17851 N. 85th St, #140Scottsdale, AZ 85255E of Perimeter Dr/N side of 85th St.

E. VALLEY LENDERS ADVANTAGE

480.502.5804 Fax 866.547.8592

D 17851 N. 85th St, #140Scottsdale, AZ 85255E of Perimeter Dr/N side of 85th St.

PORTALES

480.612.9000 Fax 866.874.1068

E 8601 N. Scottsdale Rd, #135Scottsdale, AZ 85253S of Gainey Suites Dr/E side of Scottsdale

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Branch LocatorO R T H E M E T R O P O L I T A N

H O E N I X A R E A

Resale Branches

Builder, Commercial and

Lenders Advantage Branches

prise474.3370 Fax 866.764.4710

9 W. Bell Rd, #115rise, AZ 853 74Litchfield/S side of Bell

n City972.2194 Fax 866.764.4707

2 W. Bell RdCity, AZ 85351orner Bell/Del Webb, Bell Camino Center

owhead487.0404 Fax 866.764.4703

5 N. 83rd Ave, #100a, AZ 85382ell/E side of 83rd Ave

e Legends537.1608 Fax 888.279.8559

1 N. 67th Ave, #A-2dale, AZ 85308 67th Ave/N of 101

tro Gateway936.8001 Fax 866.764.4706

0 W. McDowell Rd, Building G #7022dale, AZ 85392orner of McDowell and 103rd Ave

Anthem623.551.3265 Fax 866.764.4708

6 3701 W. Anthem Way, #112Anthem, AZ 85086Exit 229 off I-17, E on Anthem Way

101 Corporate REO Center623.869.7201 Fax 866.751.5582

7 19820 N. 7th St, #130Phoenix, AZ 85024

S of 101/Off Frontage/W of 7th St

Desert Ridge480.515.4369 Fax 866.303.1392

8 20860 N. Tatum Blvd. #100Phoenix, AZ 85050NW corner of Tatum/Loop 101

NEW OFFICE!

DC Crossing480.563.9034 Fax 866.314.2283

9 18291 N. Pima Rd, #145Scottsdale, AZ 85255SE corner of Pima/Legacy

Scottsdale Forum480.551.0480 Fax 866.874.1064

10 6263 N. Scottsdale Rd, #110Scottsdale, AZ 85250E Side Scottsdale/S of Lincoln

hooseyour homed then chooseFirst American

Price/Warner480.777.0614 Fax 888.279.8548

14 2125 E. Warner Rd, #103Tempe, AZ 85284S side Warner/W of Loop 101

Mesa480.833.5301 Fax 888.279.8550

15 3048 E. Baseline Rd, #101Mesa, AZ 85204N side Baseline/W of Val Vista

Fountain Hills480.816.1471 Fax 866.314.2309

11 16921 E. Palisades, #101Fountain Hills, AZ 85268S side Palisades/W of Saguaro

Phoenix Camelback602.954.3644 Fax 866.874.1067

12 2850 E. Camelback Rd, #180Phoenix, AZ 85016N side Camelback/28th Street

Ahwatukee480.753.4424 Fax 888.279.8546

13 4435 E. Chandler Blvd, #100Phoenix, AZ 85048SW corner Chandler/45th St

samed ay Cash: Special reuirements may need to be met

i necessary to accept cash.

Electronic Payment/Transer or Wire: This i s the

preerred method or receiving unds.

ARS 6-834 reuires that escrow agents not disburse money rom an

escrow account until unds related to the transaction have been depos-

ited and available. The legislation species which orms o payments

are acceptable or deposit.

All availability dates are based on unds deposited in our bank, and

the days are considered business days. A business day is dened as a

calendar day other than Saturday or Sunday, and also excluding most

major holidays.

* Cat

Due to the length o time it takes to receive no

rom the banks on NSF and returned items wh

disbursing unds rom escrow based on a dep

o a personal check, i 10 days have not elaps

since the unds were deposited, written veriic

rom the customers bank that the check has

reuired.

** Fst Aeca Tte Checs

Next-day availability is dependent on the chec

being drawn against the same bank or branch

our own depository bank. Both must be locat

in the same state or check processing region.

Foreign CheCks:

First American Title does not accep

oreign checks into escrow. This inc

oreign checks paid through a US B

All money coming rom outside th

United States must be sent via

wire transer.

Third ParTy CheCks:

First American Title does not accepthird party checks. These include a

check drawn on a non-nancial ins

tion account, payable to a payee o

than First American Title and subse

uently endorsed to First American

Title. Exception: United States Trea

checks payable to Farmers Home

Administrations borrower, endorsed

to First American Title.

Ocial Checks: In-State checks drawn onFDIC Insured Institution

Cashiers, Certied and Tellers Checks

U.S. Treasury Checks

Postal Money Orders (other Money Orders, see Fith Day)

Federal Reserve, Federal Credit Union and Federal HomeLoan Bank Checks

State and Local Government Checks: Must be In-State

First American Title Checks** : In State

nextd ay

Other Checks: Personal, Corporate, Credit Union,Money Market, and Travelers ChecksIn State

secondd ay - SEE CAuTion *

Ocial Checks: Out-o-State and/or Not Drawn onFDIC-Insured Institution

Money Orders (except Postal Money Orderssee Next Day)

State and Local Government Checks: Out o State

First American Title Checks** : Out o State, Other

Other Checks: Personal, Corporate, Credit Union,Money Market, and Travelers ChecksOut o State, Other

ithd ay - SEE CAuTion *

Arizonas Good Funds Law


3/7

What happens at First american? During the escrow period, our

title department begins researching and examining all historical records

pertaining to the subject property. Barring any unusual circumstances, a

commitment or title insurance is issued, indicating a clear title or listing

any items which must be cleared prior to closing. The commitment is sent

to you or review. (See Explanation o Title Commitment on the next page.)

Your escrow ocer ollows instructions on your contract, coordinates

deadlines, and gathers all necessary paperwork. For example, written

reuests or payo inormation (called demands) are sent to the Sellers

mortgage company and any other lien holders.

hoW to hold title. You should inorm your escrow ocer and lender as

soon as possible o how you wish to hold title to your home and exactlyhow your

name(s) will appear on all documents. This allows your lender and title company

to prepare all documents correctly. (Changes later, such as adding or deleting

an initial in your name, can delay your closing.) A comparison o the ways to

hold title in the state o Arizona appears on Page 13. You may wish to consult an

attorney, accountant or other proessional beore deciding how to hold title.

hoW is an escroW opened?Once you have completed the contract(or Purchase Agreement). and the Seller has accepted the oer, your Realtor

will open the escrow. The earnest money deposit and the contract are

placed in escrow. As a neutral party to the transaction, First American can

respond only to those written instructions agreed to mutually by all inter-

ested parties (Seller and Buyer); First American cannot otherwise alter the

contract or create instructions, and that protects all interested parties.

the escrow processatF.a.t.co

as part oF our service,

First american Will:

opEn escrow and deposit your good aithunds in a separate escrow account.

ConduCT a title search to determine ownershipand status o the subject property.

iSSuE a title commitmentand begin the process to delete or record items

to provide clear title to the property.

Per contract, ConFirm that the lender

has determined you, the Buyer,are ualied or a new loan.

ASk you to complete a beneciarys statementi you are assuming the Sellers loan.

mEET all deadlines as specied in the contract.

rEquEST payo inormation or the Sellers loans,other liens, homeowners association ees, etc.

prorATE ees, such as property taxes, per thecontract, and prepare the settlement statement.

SET separate appointments:Seller will sign documents; you will sign documents

and deposit unds.

rEviEw documents ensuring all conditionsand legal reuirements are ullled;

reuest unds rom lender.

When all unds are deposited, rECorddocuments at the County Recorder to transer

the subject property to you.

Ater recordation is conrmed, CloSE escrowand disburse unds, including Sellers proceeds,

loan payos, Realtors commissions,related ees or recording, etc.

prEpArE and send nal documentsto parties involved.

What is an escroW?An escrow is a process wherein the Buyer andSeller deposit written instructions, documents, and unds with a neutral third

party until certain conditions are ullled. In a real estate transaction, the

Buyer does not pay the Seller directly or the property. The Buyer gives the

unds to an escrow company who, acting as an intermediary, veries that

title to the property is clear and all written instructions in the contract have

been met. Then the company transers the ownership o the property to

the Buyer through recordation and pays the Seller. This process protects

all parties involved.

The State o Arizona licenses and regulates all escrow companies. The

Insurance Commissioner and the State Banking Department can inspect a

companys records at any time, providing urther oversight o the companys

management and position as an impartial third party to the transaction.

In Arizona, escrow services are generally provided by a title insurance

company instead o an attorney. The stability, reliability and perormance

o your title and escrow company are vital to protect the interests o all

parties to the transaction.

This explanation may help you understand the contents

Title Commitment you receive rom First American Tit

S C H E D U L E a

This is the inormation submitted to our Title Departme

by the escrow ocer. It contains the basic inormation g

to us by the Buyer or Realtor, such as the legal descrip

o the property, sale price, loan amount, lender, name

and marital status o Buyer and Seller.

S C H E D U L E b

The Schedule B exceptions are items which are tie

to the subject property. These include Covenants, Cond

and Restrictions (CC&Rs), easements, homeowners

association by-laws, leases and other items which will re

o record and transer with the property. They are reerr

to as exceptions because the Buyer will receive a clear

except the Buyers rights will be subject to conditions i

CC&Rs, recorded easements, etc. The Buyer is asked to

a receipt or the Schedule B documents which states

Buyer has read and accepts the contents.

e x p l a n a t i o n o f

t i t l e c o m m i t m e n t

R E q U I R E M E N T S

These are items that First American needs to delete an

record in order to provide a clear title to the property

Items that need to be addressed include:

- Current property-tax status,

- Any assessments that are owed such asthose or a homeowners association,

- Any encumbrances (or liens) on the property.

Sometimes items show up against a property because an

person has a name similiar to an involved party. This is

reason we ask or an Identiy Statement, to determine i

are inaccurate and can be deleted.

N O T E

This is merely inormation given us by the County Recor

oce that species the proper size, margins and print type

used on documents to be recorded.

I you have any questions, please do not hesitate to call

escrow ofcer or inormation and help.

consider this. One escrow transaction could involve

over twenty individuals including Realtors, Buyers, Sellers,

attorneys, escrow ocer, escrow technician, title ocer,

loan ocer, loan processor, loan underwriter, home inspector,

termite inspector, insurance agent, home warranty represen-

tative, contractor, rooer, plumber, pool service, and so on.

And oten one transaction depends on another.

When you consider the number o people involved, you

can imagine the opportunities or delays and mishaps. So,

much like an airline pilot cant prevent turbulence during

a fight, your experienced Realtor and escrow team cant

prevent unoreseen problems rom arising. However, they

can help smooth out the bumps and, whenever possible,

get you saely through to a successul closing.

What happens next For the Buyer?

idEnTiTy STATEmEnT.You will be asked to ll out an IdentityStatement that enables our title department to distinguish you

rom others with identical names during our search o County

records. It also provides basic inormation that will be useul

or your escrow ocer.

HomE loAn.Unless you are paying cash, assuming a loan,or the Seller is nancing, you will need to apply or a home loan

i you have not already done so. Your Realtor should be able

to recommend several reliable sources or your loan. Apply as

soon as possible to comply with the purchase contract and to

avoid delaying the closing.

rESponSE To SEllErS noTiCES. I directed by the contract,you will receive the ollowing items which reuire a response

rom you. Your Realtor can help you with your responses.

. Sellers Property Disclosure Statement listing anyexisting problems known to the Seller.

b. Inormation pertaining to the Home OwnersAssociation (HOA) or Planned Unit Development(PUD), such as Covenants, Conditions andRestrictions (CC&Rs), i applicable.

. Flood Hazard Disclosure i the property is in a food area.

d. Independent inspections, such as termite and septic,and any repairs as reuired.

TiTlE CommiTmEnT. You will receive a copy o the titlecommitment when we complete the title search. See across

or an explanation o the title package you will receive rom

First American. I you have uestions about the title commit-

ment, contact your Realtor or your escrow ocer.


4/7

tenancy

in common

community property

With riGht

oF survivorship

Joint tenancy

With riGht

oF survivorship

community

property

dcs tts sh

is titl t stpp up

tx bsis s th

t th.

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ppt titl

t stpp up tx

Note: Arizona is a community property state. Property acquired by a husband and wie is presumed to be community property unless legally specifed

otherwise. Title may be held as Sole and Separate. I a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed

to avoid the presumption o community property. Parties may choose to hold title in the name o an entity, e.g., a corporation; a limited liability company;

a partnership (general or limited), or a trust. Each method o taking title has certain signifcant legal and tax consequences; thereore, you are encouraged to obtain

advice rom an attorney or other qualifed proessional.

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C b ispptit,

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Ways to take title in Arizona

All unds deposited or the escrow must be by wire transer.q

Out o US Wire Transers / Swit Fee: International transers are executed through SWqSociety or Worldwide Interbank Financial Telecommunication, and there is an additiocharge or this type o transer.

The charge is deducted rom the wired unds and varies rom bank to bank. The charge is typically a at rateudoes not exceed $50.00, so we recommend that our clients wire an additional $50.00 when wiring rom outsthe U.S.

When a oreign owner gets ready to sell, they could be subject to a 10% (o the Salesqwithholding unless the transaction is exempt rom FIRPTA.

Most common exemption: Sales Price is not more than $300K. The Buyer or a membeqtheir amily must have plans to reside at the property or at least 50% o the number the property is used by any person during each o the frst two twelve month periodssale.

Other Exemptions that may apply are:qSeller to provide a certifcate showing they are not a oreign selleru

Seller receives a withholding certifcate rom IRS excusing withholdingu

I applicable see orms:W-7 (application or IRS Individual Taxpayer Identiication Number)

8288-B (Application or Withholding Certiicate or Dispositions by Foreign Persons o U.S. RealProperty Interests)

Buying a Home inArizona as a Foreign Buyerand how FIRPTA applies!


5/7

noBuyer should

request or 10%

withholding

yESComplete buyers declaration or

$300,000 residence exemption orm

yES- See your CPA or tax attorney regarding

application orm 8288B or an IRS

Withholding Certifcate.

- Careully review FATCOs agreement

concerning FIRPTA withholding.All parties, including sellers tax proessional,

must agree and execute this agreement.

- Escrow provides an estimated

seller statement.

Is Seller

recognizing a gain

o less

than the 10%

yESComplete Certifcation

o non-oreign status

Does the Buyerhave deinite plans

to use the property

as his residence

and sale price

does not exceed

$300,000?**

no

***noTE:Escrow will withhold 10% pending receipt o Withholding Certicate,unless the parties agree otherwise.

***irC rEquirES:The BUYER acuires the property or use as a home andthe amount realized (sales price) is not more than $300,000. The BUYER or a

member o their amily must have denite plans to reside at the property or at

least 50% o the number o days the property is used by any person during each

o the rst two 12-month periods ollowing the date o transer. When counting

the number o days the property is used, do not count the days the property will

be vacant

is Sr US cz

r US Rsd?

FIRPTA Form W-7

(Rev. January 2010)Department of the TreasuryInternal Revenue Service

Application for IRS IndividualTaxpayer Identification Number

For use by individuals who are not U.S. citizens or permanent residents.

OMB No. 15

Do not submit this form if you have, or are eligible to get, a U.S. social security number (SSN).

Before you begin:

Getting an ITIN does not change your immigration status or your right to work in the United Statesand does not make you eligible for the earned income credit.

Name

1a

First name

Middle name

Last name

Name at birth ifdifferent

1b

First name

Middle name

Last name

Foreign (non-U.S.) address

Street address, apartment number, or rural route number. Do not use a P.O. box number.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

Applicantsmailing address

Street address, apartment number, or rural route number. If you have a P.O. box, see page 4.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

Birthinformation

Date of birth (month / day / year)

/ /

Country of birth

MaleFemal

Otherinformation

6a

Country(ies) of citizenship

6b

Foreign tax I.D. number (if any)

FOR IRS USE ON

6d

Identification document(s) submitted (see instructions)

Type of U.S. visa (if any), number, and expirat

6e

Have you previously received a U.S. temporary taxpayer identification number (TIN) or employer identification number (EIN)

Yes. Complete line 6f. If more than one, list on a sheet and attach to this form (see instructions).

No/Do not know. Skip line 6f.

Under penalties of perjury, I (applicant/delegate/acceptance agent) declare that I have examined this application, incluaccompanying documentation and statements, and to the best of my knowledge and belief, it is true, correct, and compleauthorize the IRS to disclose to my acceptance agent returns or return information necessary to resolve matters regardingassignment of my IRS individual taxpayer identification number (ITIN), including any previously assigned taxpayer identifying numb

SignHere Signature of applicant (if delegate, see instructions)

Date (month / day / year)

/ /

Phone number

Name of delegate, if applicable (type or print)

Delegates relationshipto applicant

Parent

Court-appointed

Acceptance

Agents

Use ONLY

Signature

For Paperwork Reduction Act Notice, see page 5.

Cat. No. 10229L

Form W-7 (Rev

Passport

(if different fromabove)(see instructions)

See instructions.

6f

Keep a copy foryour records.

Reason you are submitting Form W-7. Read the instructions for the box you check. Caution: If you checkc, d, e, f,or g, you must file a tax return with Form W-7 unless you meet one of the exceptions(see instru

Dependent of U.S. citizen/resident alienSpouse of U.S. citizen/resident alien

U.S. resident alien (based on days present in the United States) filing a U.S. tax return

Nonresident alien filing a U.S. tax return

Enter name and SSN/ITIN of U.S. citizen/resident alien (see instructions)

bcde

(see instructions)

City and state or province (optional)

6c

Drivers license/State I.D.USCIS documentation

Other

EIN

Nonresident alien required to get ITIN to claim tax treaty benefit

a

Phone ( )

Power of Attorney

An IRS individual taxpayer identification number (ITIN) is for federal tax purposes only.

Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception

f

6g

Name of college/university or company (see instructions)City and state Length of stay

Dependent/spouse of a nonresident alien holding a U.S. visa

g Other (see instructions)

Additional information for a and f: Enter treaty country and treaty article number h

Entry date inUnited States /

( )

No.: Exp. date: / /

2

3

4

5

Issued by:

Enter: TIN or EIN

Name under which it was issued

Fax ( )

Date (month / day / year)

/ /Name and title (type or print)

Name of company

Office Code


6/7

Application for Withholding Certificate for Dispositions

by Foreign Persons of U.S. Real Property Interests

m 8288-BOMB No. 1545-1060

v. November 2006)

artment of the Treasuryrnal Revenue Service

Identification numberName of withholding agent (see instructions)

Address where you want withholding certificate sent (street address, apt. or suite no., P.O. box, or rural route number)

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Applicant is:

Transferee

Identification numberName of transferor (attach additional sheets if more than one transferor)

Street address, apt. or suite no., or rural route. Do not use a P.O. box.


Identification numberName of transferee (attach additional sheets if more than one transferee)

Description of U.S. real property transaction:Date of transfer (month, day, year) (see inst.)

Contract price $

ba

Type of interest transferred:

Associated personal propertyDomestic U.S. real property holding corporation

Real property

c

Use of property at time of sale:

Personal

Rental or commercial

Other (attach explanation)

d

Adjusted basis $

e

Location and general description of property (for a real property interest), description (for associated personal property), orthe class or type and amount of the interest (for an interest in a U.S. real property holding corporation). See instructions.

f

Check the box to indicate the reason a withholding certificate should be issued. See the instructions for information that mustbe attached to Form 8288-B. The transferor is exempt from U.S. tax or nonrecognition treatment applies.

a

The transferors maximum tax liability is less than the tax required to be withheld.

bThe special installment sales rules described in section 7 of Rev. Proc. 2000-35 allow reduced withholding.

c

NoYesDoes the transferor have any unsatisfied withholding liability under section 1445?

NoYesIs this application for a withholding certificate made under section 1445(e)?If Yes, check the applicable box in a and the applicable box in b below.

1445(e)(5)

1445(e)(3)

1445(e)(2)

1445(e)(1)

Type of transaction:

a

Other person required to withhold. Specify your title (e.g., trustee)

Taxpayer

Applicant is:

b

der penalties of perjury, I declare that I have examined this application and accompanying attachments, and, to the best of my knowledge and belief, they are true,rect, and complete.

DateTitle (if applicable)Signature

r Privacy Act and Paperwork Reduction Act Notice, see the instructions. Form 8288-B (Rev. 11-2006)

Transferor

Cat. No. 10128Z

Please type or print.

Street address, apt. or suite no., or rural route. Do not use a P.O. box.


Phone number (optional)

( )

a b

Name of estate, trust, or entity (if applicable)c Identification numberd

See the instructions for information required to be attached.

For the 3 preceding tax years:

g

(1)

(2)

Were U.S. income tax returns filed relating to the U.S. real property interest?If Yes, when and where were those returns filed?

NoYes

NoYesWere U.S. income taxes paid relating to the U.S. real property interest?If Yes, enter the amount of tax paid for each year

1445(e)(6)


7/7

Documents

Foreign Buyer Gudie