Silvia Dukes Directly Addresses Camera:  One year ago, I had an international seller who had a tax ID number that wasn't valid anymore. The IRS had changed the rules. This could have added unnecessary delays in selling his vacation home, except I referred him to an accountant before listing the home. He was able to reapply for a tax ID number before the property was sold.

This is just one issue facing international sellers who own property in the United States. Due to favorable exchange rates, many international sellers are selling the property they own in the United States. I'm Silvia Dukes, a certified international property specialist and broker associate with Tropic Shores Realty in Spring Hill. Let's take five minutes to talk about what you need to know to facilitate a smooth sale of a U.S. property owned by an international seller.

First, it's important to educate them on FIRPTA, or the Foreign Investment in Real Property Tax Act of 1980. Many foreign buyers don't realize that when they get ready to sell their U.S. property, they may be subject to income tax withholding. You must educate foreign sellers about what FIRTPA is and how it will impact their proceeds. You don't want the seller to be shocked that the amount they will receive at closing is a lot less than they expected. Also, there are exemptions to FIRPTA, so I refer them to the IRS website on that subject as well as a certified public accountant who is knowledgeable about FIRPTA to see if they qualify for any of the exemptions. 

Next, I explain that, depending on the country, the time to close may be longer than when buying the property. Many times, you're working with sellers who are not coming to the United States to sell their property. Also, the seller would have to make an appointment with a notary service, and for example, in the United Kingdom, those appointments aren't easily available. If the seller is homebound, it will be even tougher to find a mobile notary.

Many sellers don't realize that, once closing is complete, getting their money out of the United States can be difficult. Some foreign sellers have U.S. bank accounts, perhaps for rent money. If they want to transfer the money out of that account into their foreign bank account, they will have to make a trip to the United States to do so. A title company can do an international wire transfer into a foreign bank account, or the sellers can go through a commercial currency exchange company like Money Corp or Currency Direct. 

Finally, there's the question of what to do with the furnishings. When they have a houseful of furniture, it's difficult and expensive to take it back to their home country, but it may not be worth a lot of money either. Offer suggestions for donating the property or suggest some websites where they can sell it.

With international customers, you have to closely monitor the transaction and stay in contact. Explain everything carefully. And, anticipate and communicate the next steps so they are prepared to take action. If you set expectations from the beginning and help them prepare, your chances for a successful closing are high.