Publication:  Law 360

Summary:  Law 360 interviews Wei Min Tan and foreign buyer experts on the complications foreign buyers need to be aware of when buying property in New York.  This in light of increasing foreign investments into gateway cities like New York and Los Angeles.  Article covers financing, taxation and differences in customs.

Wei Min’s comments in article: 

Financing can be a problem for foreign investors as well, according to Wei Min Tan of New York buy-side condominium brokerage Rutenberg Realty, because U.S. banks lend to them at higher rates and require larger down payments.

“The key is to work with an experienced mortgage broker who has done many foreigner transactions,” he said. “Just because a bank offers a foreigner mortgage program doesn’t mean all of its bankers are experienced working with foreign buyers, because that’s a niche market.”

And on some deals, it may be necessary to explain concepts that U.S.-based clients take for granted, such as the fact that a trusted third party, and not a family member, should conduct the deal, and that a deal must be written and signed in order to be binding.

“It’s important to explain this to foreign buyers because in many countries verbal agreements are binding,” Tan said.