Working with International sellers?
Moneycorp, Laura McLoughlin
The real estate market in Florida has certainly experienced some ‘issues’ over the last couple of years following the huge boom in the good old days back in early 2000. However it seems we are finally well on the way to recovery. The Orlando Regional Realtors Association announces ‘Orlando housing market continues to record sales gains’ with new home sales up 39.54% against last year. This is being echoed in other key buying areas around the State.
Here at Moneycorp we have definitely noticed a difference in the number of new buyers entering the market, and interestingly enough, sellers actually transferring monies back to their home country. Larry Kennedy from Wachovia Bank in Kissimmee has seen a big uplift in clients repatriating funds recently 'more and more clients are now repatriating monies back home due to the changing market conditions'.
When the market turned, sellers who had financed typically were walking away from closing with little, if any, equity. Some even had to bring money to the table for closing in order to cover the difference between the owed price and the sell price. However, we are now working with sellers who have funds to transfer back home after their property sale has closed. This is great news as it means prices are coming back to some kind of equilibrium. However, for sellers, transferring funds back to their home country can be a hassle, if they can actually arrange for it to be done in the first place!
The issues
The Patriots Act recommends that all international transfers are arranged with the client being physically present in a bank branch. Although this does not at first appear an issue, most of us know that foreign national sellers often do not reside in Florida; therefore in order for them to satisfy this requirement, they must travel back to Florida in order to go into the bank – quite a trip! And of course, if they use their US bank to exchange and transfer their currency, they will be subject to charges and non-competitive exchange rates.
The solution
Moneycorp has been assisting clients send funds back to their home country by ensuring they are aware of this situation prior to closing and making the necessary arrangements. The easiest way of doing this is having the title company send clients’ US Dollars directly to Moneycorp. The client will then speak to their Dealer and book a Currency Contract; we are then able to send the corresponding currency to their home country bank account. We have also formed strategic partnerships with leading foreign national banks in Florida who understand the difficulties facing foreign national sellers. As a one-off exception, they will arrange a one time international transfer, subject to the client completing the requested documentation, allowing a transfer to be made to Moneycorp in order for us to forward the converted funds for the client.
The benefits
Clients who use Moneycorp to transfer funds back to their home country will benefit from the most competitive exchange rates in the industry combined with our commitment to making the process as simple and easy as possible. We will ensure clients are aware of the international transfer restrictions and find the best solution to make sure they don’t experience any issues.
The US Dollar has strengthened against most major currencies recently, especially the Pound, Canadian Dollar and Euro – so clients will also benefit from favourable exchange rates. We offer a range of services to ensure clients can benefit from favourable market movements so if you have a client who is selling a property and may need to send funds back to their home country – contact your Account Manager today.
Laura McLoughlin
laura.mcloughlin@moneycorp.com
407 352 5890