Texas Escrow closing vs Vancouver closing system
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Different States have different rules for Escrow closings. Today I'm sharing the Texas Escrow closing vs Vancouver closing system.
Major differences as follows:
1) Canada called is as "Deposit" whereas US called it as "Ernest"
In Canada: normal practice is min. 5% of purchase price once we have an unconditional offer then the rest upon closing.
US : it can be as little as couple thousands dollars on million dollars home upon accepted offer then pay the rest upon closing.
2) Tight financing approval
Texas: out of the area appraiser was being asked to do the appraisal. Then they need to approve the appraisal report by another dept & sometimes take a long time. Bank still has the right to refuse funding to the buyers in the last minute if they "Doubt" the buyer's intention on the purchase.
Vancouver: Appraiser writes the report for the bank & that's it.
3) Escrow closings vs our closing:
Title companies normally handle closings. Don't use lawyer like us. Lawyer only charges couple hundreds dollars. If you want legal advice, you need to pay extra. Buyer buyer & seller go to the Title companies to sign all documents. If documents are missing from any dept like the banker, buyer & seller can't close & have to go back to the title office the next day to wait again. It can be a waste of time for both seller & buyer. Both parties still have the option to back out the deal on that day. Therefore, there is no guarantee that you actually bought or sold a house until you actually sign all papers. Property taxes notices are send around October 1st, but are not due until the end of the year.
Canadian closing: easy system. Buyer & seller go to their own Lawyers or Notary Public, sign all necessary paper then the legal firm will handle all registration with Land Title office. Both Listing & Selling agents exchange keys & delivery keys on Possession date without Buyer & Seller meeting each other.
4) Property tax:
I was in Forth Worth area. Property tax dept has a lot of arrears payment due to the amount of foreclosure properties. The govt then raise the other properties owners property taxes. My friend's 6000 sf house is paying $24,000 a year. However, the property tax on agriculture lands are way less than the residential property, only thousands of dollars on hundreds or even thousands of acres of land.
Thank goodness we don't have this problem in Vancouver.
Should you wish to buy properties in US, please give me a call & I can refer you to agents in the area you are interested in. You must understand the system before you do any purchase. It's very different from Vancouver.
Tina Mak Personal Real Estate Corporation
Vancouver Radio Realtor AM1320
www.TinaMak.com
www.Tina Mak.ca 温哥华中文地產網站
www.GenYrealestate.ca
604-412-5860
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