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Sold a house, but can't cash the check from title company
Hi everyone,
My friend, who lives overseas, sold his house in Kansas City and the title company wrote him a check.
My friend does not have a bank account in the States (and is unable to open one since he is not a resident) and the title company does not wire the money internationally.What can he do in order to cash his check, fast? He wants to invest in another house in the States and does not want the title company to mail him the check to his country, which would take 8 weeks to process at a bank overseas.
Any direction or advice is appreciated. Thank you in advance!
What’s your goal? Run off with the 15% capital gain tax? Cash some checks that you got your hand on? Or just to get the money a week or so early?
Some of your reply seems off somehow. Wire transfer that take 8 days!!!? And the bank won’t wire transfer because of exchange rate!!!?
“Sorry, but what is BMO? The banks here in the States say that he has to be a resident. Also, he doesn’t want the money wired to his country, because it’ll take 8 weeks and he doesn’t want to wait that long. We’ve been watching some properties on auction.com and the bidding will start in the next week or so and he doesn’t want to miss those. “
Wire transfer doesn’t take 8 weeks. It happens a couple of hours.
And how does he buy property from auction.com when he’s not even physically here?
Originally posted by @Account Closed:
Originally posted by @Diana Duncan:
He can open an account with BOA. Will need to be in person and he will need a US address he can use. Ideally someone he knows who has a relationship with the bank.
The bank here said the same thing - that he needs a US address, which he doesn’t have. We ere wondering if I could add him on my account - like a joint account. I think they are a little bit more flexible adding people on existing account vs. opening a new one.
I wouldn't recommenf that! Can he use your address as his, doesn't need proof just say he stays there? somewhere for statements, debit card etc to be sent.
BMO, Bank of Montreal. I did everything over the phone and mail. I am not a US resident or a citizen.
Originally posted by @Tom Gimer:
Have you folks heard of the Patriot Act?
LOL
Originally posted by @Account Closed:
@Account Closed If his intent is to purchase another property, why doesn't he keep the money at the title company for use on the next purchase? If the property he wants to purchase is in another state, once he has the contract executed, he can have the current title company wire funds to the new title company for the purchase. This is done all the time, most commonly for people moving from state to state and trying to coordinate the sale of their home and the purchase of a new one in the new state.
Thanks Cara! Great advice! I didn’t even know that was possible to do. Just to be clear, can he still do that if the next house he wants to be purchase is in the same state as the one that he just sold? Also, he still would need to cash the remaining amount so that he can use that money to fix it up.
It's done all the time.
Regarding the fix-up expenses, you can have contractors invoice the title company to be paid as part of the transaction, either as part of the initial settlement, or you can do it as a hold over when you close and allocate a certain amount to be distributed to others after the fact with receipt of completion submitted to the title company. ALl of it is documented as part of your settlement statement, so it makes it easy to keep a clean record of the income and expenses of the transaction.
Regarding any portion that he intends to get back as profit, I am not sure what options he has if he is not willing to receive a wire, or cash a check from the title company. If he intends on investing in further properties in the US, he WOULD have a US address, as any of those properties would be a US address he could use. So, if that is the only hold up, it seems like an easy issue to address.
Originally posted by @Albert Ng:
What’s your goal? Run off with the 15% capital gain tax? Cash some checks that you got your hand on? Or just to get the money a week or so early?
Some of your reply seems off somehow. Wire transfer that take 8 days!!!? And the bank won’t wire transfer because of exchange rate!!!?
Not 8 days, 8 weeks. That's how long it would take a foreign bank process the check if the title company mailed the check to him directly. It's the title company that doesn't do an international wire transfer, not the bank. Is it clear now?
And the goal is not to do anything illegal, just to be able to cash it quickly, I had made this very clear in my previous messages.
Originally posted by @Albert Ng:
“Sorry, but what is BMO? The banks here in the States say that he has to be a resident. Also, he doesn’t want the money wired to his country, because it’ll take 8 weeks and he doesn’t want to wait that long. We’ve been watching some properties on auction.com and the bidding will start in the next week or so and he doesn’t want to miss those. “
Wire transfer doesn’t take 8 weeks. It happens a couple of hours.
And how does he buy property from auction.com when he’s not even physically here?
Sorry for the confusion, mailing the check and get it process overseas takes 8 weeks. Title company doesn't wire transfer. As for the auction.com, you don't have to be here physically. Everything is digital. I've done it before.
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Try ZenBank....no branch...no cash.
If you and your friend trust each other, then FedEx him the check. Have him endorse it to you and FedEx it back. Deposit it in your bank account, wait till it clears, then wire it to him, Or keep it and write the check for his next property purchase. Or have him spend a couple hundred and help him open a US LLC with you as a signatory and responsible manager, then you go open the LLC a bank account and have him endorse the check to the LLC and deposit it in the new account.
Originally posted by @Tom Gimer:
@Account Closed Did the title company withhold FIRPTA?
I asked them about FIRPTA and they responded, "We do not withhold taxes but we will be submitting a 1099-S for the 2018 tax year." Is it good or bad?
Originally posted by @Scott L.:
If you and your friend trust each other, then FedEx him the check. Have him endorse it to you and FedEx it back. Deposit it in your bank account, wait till it clears, then wire it to him, Or keep it and write the check for his next property purchase. Or have him spend a couple hundred and help him open a US LLC with you as a signatory and responsible manager, then you go open the LLC a bank account and have him endorse the check to the LLC and deposit it in the new account.
Can he do that? That would be great! I've talked to my bank and the manager there is trying to open a personal bank account for him; however, they do not for the LLC that he had formed. So, he has a US LLC already, but can't open a bank account. Maybe if he adds me as a signatory, I can open one for him then, great. I will ask about that. Thank you!!!