Cross Border Real Estate

Our team specializes in representing clients who are purchasing or selling a U.S. property. Whether clients want to use the property as a vacation home or as an investment there are specific considerations that make buying / selling in the U.S. distinctly different. Our main goal is to ensure your interests are protected and smooth any bumps along the road during the transaction. Our attorneys will review the contract on your behalf, help you explore financing options and assist you with title insurance. We also leverage our cross border tax and estate planning expertise to ensure that title is taken in the optimal structure to minimize legal issues upon sale or death.

We have developed particular expertise in the following areas:

  • Purchasing U.S. real estate / selling U.S. real estate
  • Preparing and reviewing closing documents for clients
  • U.S. / Canadian deemed disposition analysis
  • Dealing with issues relating to Foreign Investment in Real Property Tax Act (“FIRPTA”) / withholding issues on sale by non-resident
  • Capital gains upon sale
  • Obtain U.S. tax credits on sale to prevent against double taxation issues in Canada
  • Providing title insurance for buyers
  • Obtaining mortgages in the U.S.
  • Developing structures for companies looking to create partnerships / LLCs for Canadian investors

Given the recent drop in property values, now may be the ideal time to transfer the property out of the corporation and into a Cross Border TrustSM with little or no capital gain.

Topical Issues:

  • Given the recent drop in real estate in the U.S. and the strong Canadian dollar, many Canadians are purchasing U.S property.
  • The mortgage crisis has affected U.S. banking for non-residents. It is still possible to obtain financing but there are more restrictions.
  • Given the recent drop in property values this may be the ideal time to transfer a U.S. property out of corporation and into a Cross Border TrustSM.