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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$1,349,900 :: 4465 S VIRGINIA Way, Chandler AZ, 85249

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4 beds, 2.5 baths
Home size: 4,055 sq ft
Lot Size: 12,633 sq ft
Added: 04/22/22, Last Updated: 05/18/22
Property Type: Single Family
MLS Number: 6387206
Community: PINELAKE ESTATES
Tract: PINELAKE ESTATES
The price of this listing was last reduced on 5/18/2022 by 4%
Status: Active


On a quiet street your updated Lake View home awaits. Stroll through the large, gated courtyard to your grand entrance and enter this bright, open floorplan. With the finest finishings from Viking appliances, wood trimmed office, updated lighting & two modern fireplaces...the lifestyle this lake home affords is beyond unique. Lake Views from your office, FR, LR, master and Kitchen. Indoor/outdoor living as you entertain family and friends in the new $150K backyard with Carrara Marble, Automated pool/spa and modern light accents that is unmatched at Pinelake. Dine in outdoor table space while others talk in the outdoor living room or relax in the fire pit while the kids play in the negative edge pool. Later relax in the jacuzzi or lower sitting area. Minutes to Ocotillo dining and golf.

Listed with RE/MAX Excalibur


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


$575,000 :: 3800 S CANTABRIA Circle #1073, Chandler AZ, 85248

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2 beds, 3 baths
Home size: 2,218 sq ft
Lot Size: 3,485 sq ft
Added: 05/16/22, Last Updated: 05/17/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6385819
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
Status: Active


Enjoy resort living at its finest in the quiet & exclusive gated community in Cantabria Shores with privileges at the Ocotillo Resort and Golf Club. This spacious 2218 sq.ft, 2 story townhouse features 2 bed, 3 bath with a large master suite that offers a private balcony, ensuite bath with dual sink, soaking tub, step-in shower, and an oversized walk-in closet. A study/den with built-in bookcases & file storage, and an adjacent large loft/sitting area that shares a balcony. The kitchen features matching appliances, ample cabinets, granite counters, pantry, and island. This unit has a 2 car garage with built in workbench, storage cabinets & overhead storage. This distinctive golf course is one of Arizonas top ranked golf courses.

Listed with Bliss Realty & Investments


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


$550,000 :: 3800 S CANTABRIA Circle #1053, Chandler AZ, 85248

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2 beds, 2 baths
Home size: 1,714 sq ft
Lot Size: 3,485 sq ft
Added: 05/11/22, Last Updated: 05/11/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6397806
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
Status: Active


LAKE & GOLF VIEWS of Ocotillo fairways in Cantabria Shores. UPDATED & LIKE NEW. Dream Kitchen with custom 42'' espresso cabinetry, Granite countertops, roomy breakfast bar, Stainless appliances, double oven. Laminate wood & tile flooring. Custom window coverings include Plantation shutters & roller shades. Two SPACIOUS Bedroom suites have upgraded Bathrooms, large walk-in closets. GREAT ROOM design. Amenities include Community POOL & SPA. GATED community of Cantabria Shores is an island of townhomes, surrounded by fairways & lakes. A short walk to the OCOTILLO CLUBHOUSE, practice facilities & patio overlooking the lush 27-HOLE golf course. HOA fees include all but gas & electricity. Close to the best of Chandler conveniences - freeways, dining & shopping. The Lock & Leave Life. Must see!

Listed with Keller Williams Realty Sonoran Living


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


$515,000 :: 3800 S CANTABRIA Circle #1086, Chandler AZ, 85248

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2 beds, 2 baths
Home size: 1,764 sq ft
Lot Size: 3,485 sq ft
Added: 05/04/22, Last Updated: 05/04/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6393956
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
Status: Active


This is it!!! Perfect ''Lock and Leave'' Ocotillo Golf Course Area Condo! Complex is surrounded by water and golf course! Remodeled! White Cabinets, Stainless Appliances, Upgraded Bathrooms. HOA pays for everything but SRP Power and SW Gas! Why buy anything else, when you can buy this amazing 100% move in ready home. Two balconies, one off the great room, and one off the second bedroom. Two-car garage w/ private direct entrance. Gated community includes heated pool/spa. All furniture available on separate bill of sale too! Epoxy garage floor! Teak flooring on balcony! Walk to 27-hole Ocotillo golf course w/ full service Restaurant & Bar! 5 Minutes from Downtown Ocotillo with more dining & entertainment. Close to Intel, Northrop Grumman, Price Road Corridor, 101, 202, I-10 freeways.

Listed with eXp 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/!


$580,000 :: 3800 S CANTABRIA Circle #1126, Chandler AZ, 85248

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3 beds, 3 baths
Home size: 2,218 sq ft
Lot Size: 3,485 sq ft
Added: 04/28/22, Last Updated: 04/28/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6390872
Community: CANTABRIA SHORES
Tract: CANTABRIA SHORES
Status: Active


Welcome Home!!! This gorgeous 3 bedroom 3 bath townhome at the gated community of Cantabria Shores in Chandler is in a fantastic location. Close to restaurants, shopping, schools, parks, golfing at Ocotillo Golf Club & easy access to the I-10 or 202 Fwy's. You'll love the layout & 21 ft ceilings of this 2 story home. Your kitchen offers white appliances, granite counter tops, crown molding cabinetry & an island for extra prep & storage. Your spacious master suite offers a plethora of natural light, a large walk in closet, dual vanity, a stand alone shower & soaking tub, as well as direct access to your balcony. This home also offers a new roof in 2021, upgraded ceiling fans & lighting, diamond laid tile flooring, a neutral paint scheme, a gas fireplace,

Listed with Canam Realty Group


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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