What Canadians buying in Arizona should know

Important considerations when buying in Arizona

As home prices have declined in Arizona, the goal of many Canadian citizens of owning a home in the U.S.  has become a reality.  Instead of shoveling snow and battling freezing temperatures, Canadian second home owners can be dealing with other issues such as which golf course should I play today, or how early do I want to get up to go hiking or jogging, and where should we go for dinner.  I’ve also noticed that many Canadian homeowners who live on a lake in Canada have a desire to duplicate that scenic landscape and have inquired about lakefront homes in Phoenix.  When a buyer from Canada decides to pursue owning property in Arizona, there are some considerations they should be aware of.

Getting a loan in the U.S. as a Canadian citizen

A frequent question is, “Can a Canadian get a loan through a U.S. bank?”  It has been somewhat of a moving target; however, as of this writing there are companies that do offer loans to Canadians through a U.S. bank.  There are some conditions.  For example, one lender requires that the down payment must be at least 30% and the borrower must have 6 months reserve in a U.S. bank.  And the maximum loan amount is $417,000 and requires a 700 FICO score.  It’s best to talk to a loan officer that is familiar with these loan options.   If you’d like contact information on banks that do provide loans to Canadian citizens, please call me directly.

Earnest Money, Escrow and Signing

Earnest money which is used to open escrow once the offer has been accepted must be in U.S. funds.  Another difference is that in Arizona attorneys are typically not involved in the transaction.   Title/escrow companies take care of the title insurance and make sure the contract is executed as written.  This makes for a much more streamlined escrow and smooth closing process.  In fact, the buyer(s) do not need to be present at closing, and the necessary paperwork can be signed in Canada and sent via priority mail to the title/escrow company prior to closing.  Possession takes place once the transaction has recorded with the county recorder.

When a Canadian buyer is ready to place an offer on a house and no financing will be required since it will be a cash transaction, the proof of funds (typically a bank statement) may be required to be in U.S. funds.

Inspection Period

The 10 day inspection period begins once the offer has been accepted. During this time, it is the buyer’s opportunity and responsibility to inspection the property and the surrounding area in detail. The Arizona Department of Real Estate has provided the Buyer Advisory to assist buyers in their due diligence.

Most Arizona properties are platted and do not require a survey.   This is different from Canada where a surveyor’s certificate is required.

FIRPTA – The Foreign Investment in Real Property Tax Act

 The Foreign Investment in Real Property Tax Act (FIRPTA) kicks in when the seller is a foreign person. Typcially not an issue when buying a property, it will come into play when selling.  One of the exemptions to FIRPTA is that the house sells for  less than $300,000.   It is in place to insure that foreign persons are not purchasing property only to sell it later at a profit without paying taxes.  A foreign person is a nonresident alien individual; a foreign corporation not treated as a domestic corporation; or a foreign partnership, trust or estate. A resident alien is not considered a foreign person under FIRPTA. IRS Publication 515 can provide more detailed information.

The Phoenix area provides a great second home get-away for Canadians looking for a repreive from the harsh winters.   For detailed information regarding Arizona homes for sale, contact me at your convenience. Or receive property listings via e-mail that fit your winter vacation home criteria.

Here’s some feedback from one of my favorite Canadian clients  last year who live in Alberta and their feedback on the process:

“Just thought that we’d drop you a quick note to let you know how much we enjoyed working with you on the recent purchase of our home in  Phoenix.  No surveyor’s certificate and no legal fees made the process a lot less stressful than buying our home in Alberta. 
 
We, seriously, don’t know how we would have managed without you.  Since the inspections, utilities hook-ups, and all the paperwork were initiated by you, all we had to do was – literally – get the key and move in.
 
So “THANK YOU” and be assured than we are passing your information on to anyone we meet who talks about investing in property in Arizona.
 
All the best,
Jim & Annette
Millet,  Alberta  ”

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$584,999 :: 4898 S FRESNO Street, Chandler AZ, 85249

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4 beds, 2.5 baths
Home size: 3,149 sq ft
Lot Size: 14,811 sq ft
Added: 08/09/19, Last Updated: 08/25/19
Property Type: Single Family
MLS Number: 5962190
Community: PINELAKE ESTATES
Tract: PINELAKE ESTATES
The price of this listing was last reduced on 8/25/2019 by 2%
Status: Active


Beautiful Lakeview home in Pinelake Estates! Light and bright 4 bedroom plus den with split floor plan and soaring ceilings. Enjoy the sunsets from the resort style backyard with Pebbletec pool complete with water feature and built in BBQ. This home was built for all your entertaining needs with eat in kitchen that opens to great room. Close to dining, shopping, award winning schools (Hamilton HS),Basis Charter School, golf (Ocotillo Troon Golf Course) and everything that makes this area special.

Listed with My Home Group Real Estate


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$799,900 :: 415 E LYNX Way, Chandler AZ, 85249

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4 beds, 3.5 baths
Home size: 5,195 sq ft
Lot Size: 15,682 sq ft
Added: 08/19/19, Last Updated: 08/19/19
Property Type: Single Family
MLS Number: 5967123
Community: PINELAKE ESTATES
Tract: PINELAKE ESTATES
Status: Active


Rare opportunity to own a water front home in south Chandler Pinelake community. Resort like house budding the lake with huge lot. 2 story ceiling living room with fire place. 2 staircase leaning up to 2nd floor loft. Open kitchen with granite countertop, center island, walk in pantry, SS appliances. Newly tile and wood flooring for downstairs hall way, family kitchen and dining room, powder room and 2 upstairs bathroom. Brand new interior painting. Close to freeway, shops and restaurants and within A+ Chandler school district.

Listed with Gold Trust Realty


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$749,995 :: 489 E CRESCENT Way, Chandler AZ, 85249

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5 beds, 4.5 baths
Home size: 4,308 sq ft
Lot Size: 20,909 sq ft
Added: 06/28/19, Last Updated: 08/17/19
Property Type: Single Family
MLS Number: 5944535
Community: PINELAKE ESTATES
Tract: PINELAKE ESTATES
The price of this listing was last reduced on 8/17/2019 by 1%
Status: Active


Have you always dreamed of a lakeside home with the view of a beautiful sunset? Your home sweet home awaits you! With over 4,300 sq. ft, this beautiful waterfront home is perfect for a family who likes a lot of living area. The kitchen features are ideal for anyone who loves to cook, including double wall ovens, granite countertops, a large island and breakfast bar, and a formal dining room. A custom entertainment system downstairs makes it easy for anyone to entertain family and friends. Other features include a mother-in-law suite, custom office and an upstairs loft. Beautiful backyard includes a recently updated pool, a garden area, and a lakeside access platform for anyone who loves to use paddleboats. The spacious upstairs master bed has a large private bath, walk in closet, and more!

Listed with HomeSmart


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$359,900 :: 3800 S CANTABRIA Circle S #1085, Chandler AZ, 85248

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3 beds, 2.5 baths
Home size: 2,087 sq ft
Lot Size: 3,485 sq ft
Added: 01/11/19, Last Updated: 08/19/19
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5866662
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
The price of this listing was last reduced on 8/19/2019 by 1%
Status: Active


An inviting, stunning REMODEL can be yours in Cantabria Shores at Ocotillo. Great Room design w/over 250SF of added upstairs living space & CUSTOM finishes. Kitchen features new cabinets, GRANITE counters with large breakfast bar. Neutral tile floors on main level. Upstairs Master Bedroom Suite with upgraded Bathroom & tiled snail shower. Two Guest Bedrooms are split + Full Bathroom & Media room. Leisure RESORT LIVING at OCOTILLO GOLF CLUB. Amenities include HEATED Community POOL & SPA. Tucked away in a GATED community w/dramatic Palm-Lined entry. A short walk to Ocotillo's tees & greens & patio dining overlooking the lush 27-HOLE golf resort. Close to the best of Chandler conveniences - freeways, dining & shopping. The Lock & Leave Life ... See it Today!

Listed with Keller Williams Legacy One


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$274,900 :: 3800 S Cantabria Circle #1086, Chandler AZ, 85248

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2 beds, 2 baths
Home size: 1,750 sq ft
Lot Size: 3,485 sq ft
Added: 05/06/19, Last Updated: 07/08/19
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5921729
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
The price of this listing was last reduced on 7/8/2019 by 2%
Status: Active


Fantastic condo in the amazing gated community of Cantabria Shores!! This wonderful home offers open floor plan with brand new wood look tile, built-in media niche in the living area, 2 bath, 2 master bedrooms, skylight in master bath, new, neutral paint throughout, and natural light. Beautiful kitchen includes white appliances, breakfast bar, and cabinet/counter space. Both bedrooms offers it's private exit to balcony, carpet flooring, walk-in closet, and full bath. Located just a short distance from both the clubhouse and the pool area. Nestled on the Phil Mickelson owned Ocotillo Golf Club...You'll discover a lifestyle you will fall in love with! Come take a look today!

Listed with Ocotillo Realty, LLC


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


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