Cross Border Pro

Bill Introduced That Would Require SSN For Real Estate Purchase

A Bill introduced by Rep. John Doolittle to Congress would require that mortgage providers obtain a Social Security Number (SSN)  from purchasers of a primary residence in the U.S before providing a residential mortgage.  The mortgage industry has developed programs that allow non-resident and immigrant purchasers to use a Individual Tax Identification Number (ITIN) instead of a SSN to purchase a home. This bill is obviously aimed at illegal immigrants.  While I will not comment on the protectionist action I will comment on the potential unintended effects of this Bill.  Areas of the South in the U.S. including Florida, Arizona, and California have large populations of Canadian home owners.  These "snowbirds" spend significant time in the U.S. and for some, they do not own a home in Canada.  Some rent and some live with relatives when they return to Canada.  These Canadians need to ensure that they are not spending more than the allowed time in the U.S. as visitors and effectively becoming "illegal immigrants."  However, assuming that they are following the rules, this Bill would require that they prove the home purchase in the U.S. is not their primary residence.  Much depends on how stringent the rules are related to this proposed Bill.  If to onerous it could significantly decrease the number of Canadians purchasing vacation properties in the U.S.  This is definitely one to watch.

Cross Border Title Insurance and Escrow

Real estate investors in North America can purchase real estate with confidence knowing that title to the property they buy is generally clear and insured.  In the U.S. there is title insurance provided by private insurers.  In Canada title is guaranteed by the provincial governments through a land registry system.  As North American real estate investors move into international developments the need for title insurance becomes even more apparent.  Resort development in Mexico, South America, and the Caribbean by both U.S. and Canadian developers is picking up.  As a result third party insurers and escrow closing agents such as LandAmerica are seeing increased demand for their international services.  When purchasing in foreign countries investors need the confidence that the property they are buying has a clean title and that the closing is handled effeciently and according to the laws of the local market. U.S. based title insurers are also seeing an increase in demand for their services from foreign developers/investors that develop in countries foreign to them.

Canadian Developers in the United States

The Canadian real estate market has been booming for several years now in most market areas of Canada. Many large developers in Canada also are active developers and investors in the States.  Komenda Capital located in Vancouver, BC has several land development deals in Washington State and the Southwestern U.S. along with their development projects in British Columbia.  One of their larger U.S. projects is the Centre Point Condominiums located in Bellingham, Washington.  This is a 132 unit multi-phase project.

Mosaic Homes located in Vancouver, BC is a multifamily developer with several past multifamily projects thoughout the Greater Vancouver area.  They are currently developing a 97 unit townhouse project called KEW in the Clayton area of Surrey.  Mosaic also maintains a Seattle office and they have two multifamily projects currently under development in the Seattle area.

Pinnacle International is a high rise developer located in Vancouver, BC.  They have build over 4,000 residential and hotel units. They have developed and currently manage over 1,000,000 square feet of industrial, office, and retail space.  They develop high rises in Vancouver and also develop and have an office in Toronto.  Pinnacle has an office in San Diego and currently has at least one high rise project in San Diego under developement.

WestStone Properties is a multifamily developer located in Abbotsford, BC.  They have developed several multifamily developments across the lower mainland of British Columbia.  They are currenlty leading the way into the Walley area of Surrey, BC, which has historically been a run-down area with crime and drug problems.  They, and other developers, are attempting to turn this area around and several pre-sale projects have sold out in a day or two.  WestStone is also an active developer in the Southwestern U.S., specifically Phoenix.  They are reportedly the 3rd largest multifamily builder in Phoenix.

Deecorp Ventures is primarily a real estate investment firm investing in landmark buildings and potential redevelopment / value-added commercial buildings. Deecorp owns or has redeveloped several landmark commercial buildings in downtown Vancouver, BC.  Deecorp is also an active investor in Texas, Colorado, California, and Arizona. Deecorp appears to specialize in working with foreign investors and specifically investing in landmark commercial buildings.