Expert: Lori Frankfort - 5/19/2009

Question
I am a Canadian who is interested in buying a property in California (Hemet/sanJacinto).  I would like to have some advice about finding a reputable realtor, lawyer etc in the area.  We also want to know if there are pitfalls in foreigners purchasing in California.  We are not yet retired, but hope to in about 3 years.  We do not need to get a mortgage.  Should we put our children's names on the title from the beginning in order to avoid future taxation problems?

Answer
Hi Janice,

The best way to find a good Realtor in that area is to search the website rebac.net for agents in that area that are "Accredited Buyer Representatives".  This means they have passed a series of tests and specialize in working with Buyers.

As far as title is concerned, your best bet is to contact either a Real Estate Attorney or escrow company to get advice on how to take title.  I have heard that it is sometimes helpful to take title with your children as "Joint Tenants", in which case when you pass away your share of the ownership of the home reverts to them, but they will still have to pay taxes.  The only way to avoid taxes (to my knowledge) is to title the house completely in their name, thus they own it and let you live in it.

Good luck,

Lori Frankfort