The Foreign Investor's Timeline: From Offer to Close

Purchasing real estate in New York City is a high-stakes process, and for foreign buyers, it involves an added layer of complexity. While the market is welcoming to international capital, navigating the U.S. legal system, financing rules, and closing mechanics requires a well-structured plan.

This guide outlines the entire timeline of a property purchase in NYC from the perspective of a non-resident. Each step from identifying your investment goals to reaching the closing table includes practical tips and critical milestones tailored to the international buyer.

Phase 1: Define Your Goals and Financing

Before diving into listings, international buyers need a clear sense of what they’re trying to achieve with their purchase. Financing, ownership structure, and use case should all be clarified upfront.

The pre-search phase sets the tone for your transaction. It ensures that by the time you engage with brokers or lawyers, you already have a financial and strategic foundation in place.

Determine Your Investment Objectives

Start by asking:

• Will this be a primary residence, vacation home, or rental investment?
  
  

• What is your budget in U.S. dollars, factoring in currency exchange?
  
  

• How long do you plan to hold the asset?
  
  

• What return on investment or lifestyle access do you require?

Being clear on purpose guides every subsequent decision, from neighborhood to financing.

Choose the Right Ownership Structure

Foreign buyers can purchase property:

• In their personal name (simple but exposes estate tax risk)
  
  

• Through a U.S. LLC (more privacy, better estate planning)
  
  

• Through a trust or offshore company (complex but tax-efficient for some)

A qualified U.S. real estate attorney should help you establish the proper entity before you make an offer.

Decide on Cash vs. Financing

If buying in cash, your process is faster. If financing:

• Prepare to provide foreign bank statements and tax returns
  
  

• Expect to put down 30 to 50 percent
  
  

• Use international mortgage brokers or private banks with cross-border experience

Begin financing prep before property search. Getting pre-approved or establishing proof of funds will be required to submit competitive offers.

Phase 2: Begin Your Property Search

The NYC property market is competitive, even for foreign investors. Once your legal and financing groundwork is in place, the property search can begin in earnest.

At this stage, having the right team is critical. You’ll need an experienced real estate agent who understands international buyers, along with legal counsel familiar with cross-border transactions.

Select an Agent and Attorney

Your real estate agent should:

• Understand the differences between condos and co-ops
  
  

• Be familiar with foreign buyer needs (remote viewings, LLCs, etc.)
  
  

• Have access to new developments and off-market listings

Your attorney should:

• Specialize in NYC property law
  
  

• Be fluent in handling FIRPTA, ITINs, and foreign tax disclosures
  
  

• Be able to represent you fully without requiring U.S. residency

View Properties and Analyze Market Data

Expect to explore:

• Condos: Easier for foreign ownership, subletting allowed, no board approval
  
  

• Co-ops: Less ideal due to board interviews, restrictions on rentals, and citizenship rules
  
  

• Townhouses: Suitable for large investments and privacy, often require more due diligence

Agents may provide virtual tours if you’re abroad. Analyze neighborhood data, HOA rules, and rental yield projections if investing.

Shortlist and Run Comparables

Once you identify target properties, your agent will run comparables. These include:

• Recent sales in the building or area
  
  

• Days on market
  
  

• Historical pricing trends

This data helps you make a realistic offer, especially in a market where pricing is often negotiable.

Phase 3: Make an Offer and Negotiate

Once you find a property, the offer process begins. In NYC, offers are typically non-binding until contracts are signed. However, they initiate the timeline and lock in pricing expectations.

Foreign buyers should be prepared to show seriousness through documentation and flexible terms.

Prepare Proof of Funds or Pre-Approval

The seller will request proof of funds in USD or a letter of pre-approval from a U.S. lender. Ensure:

• Funds are liquid or transferable within 30 to 60 days
  
  

• Currency conversions have been timed or hedged
  
  

• You can wire a 10 percent deposit within days if needed

Buyers using an LLC should also provide organizational documents or proof of beneficial ownership.

Submit the Offer and Deal Sheet

Your agent will send the offer and relevant terms to the seller’s broker. These include:

• Purchase price
  
  

• Down payment and financing details
  
  

• Proposed timeline
  
  

• Inclusions or exclusions (fixtures, furniture, etc.)

If accepted, the seller’s attorney sends a deal sheet to your attorney to begin the contract process.

Negotiate Terms

Your attorney and broker will coordinate with the seller’s side to finalize:

• Price
  
  

• Closing date
  
  

• Contingencies (inspection, financing)
  
  

• Tax clauses (FIRPTA if the seller is also foreign)

Once mutually agreed, the deal moves into a contract.

Phase 4: Due Diligence and Contract Signing

In NYC, the buyer’s attorney conducts legal due diligence before the buyer signs the purchase contract. This phase typically lasts 5 to 10 business days.

Your deposit is only wired after contract execution.

Review Building Documents

For condos or co-ops, your attorney will review:

• Offering plan and amendments
  
  

• Financial statements of the condo association
  
  

• Board minutes and house rules
  
  

• Pending litigation or capital improvement assessments
  
  

This is critical for understanding your future liabilities.

Conduct Home Inspection (Optional)

While not legally required, many foreign buyers order a property inspection, especially for townhouses or resale condos. It can identify:

• Roof, HVAC, or plumbing issues
  
  

• Electrical deficiencies
  
  

• Evidence of prior damage or unpermitted work

Results can be used to renegotiate or walk away if the contract allows.

Sign the Contract and Fund Deposit

Once your attorney is satisfied, you’ll sign the contract and wire the 10 percent deposit to escrow.

• Contracts are binding in New York
  
  

• Deposit is non-refundable unless contingencies apply
  
  

• Contracts can be signed remotely via DocuSign or POA

From here, the seller countersigns and the deal becomes official.

Phase 5: Financing and Title Process

If you're financing, your next priority is finalizing the mortgage. Meanwhile, the legal process continues behind the scenes to ensure a clear title and prepare for closing.

Finalize Mortgage Approval

Your lender will require:

• Updated financial statements
  
  

• Property appraisal (ordered by the bank)
  
  

• Proof of insurance
  
  

• Entity docs if purchasing through an LLC

This process takes 30 to 60 days, depending on the complexity. Keep your tax advisor and attorney looped in.

Apply for ITIN if Needed

If you do not have a U.S. Social Security Number, your accountant will help you apply for an Individual Taxpayer Identification Number (ITIN). This is required to file U.S. returns and handle FIRPTA compliance later.

Title Search and Insurance

Your attorney and title company will ensure:

• No outstanding liens or judgments
  
  

• No third-party ownership disputes
  
  

• Building compliance with local codes

They will also arrange title insurance to protect you against defects in ownership history.

Phase 6: Pre-Closing and Final Walkthrough

With financing approved and title cleared, you are weeks from closing. The final days require administrative preparation and property inspection.

Confirm Funds and Wire Instructions

Work with your attorney and bank to:

• Convert currency if needed
  
  

• Arrange an international wire to escrow
  
  

• Confirm exact closing amount (price + taxes + fees)
  
  

Always verify wire details verbally to avoid fraud.

Pre-Closing Walkthrough

Conduct a walkthrough 24 to 48 hours before closing. This ensures the unit:

• Has not been damaged
  
  

• Includes agreed-upon items
  
  

• It is in broom-clean condition

If anything is wrong, your attorney may negotiate a credit or escrow holdback.

Phase 7: Closing the Deal

Closing usually takes place at your attorney’s office or remotely via power of attorney if you're abroad. The title is transferred, and the transaction is recorded with the city.

What Happens at Closing

• Buyer and seller sign final documents
  
  

• Balance of funds is wired to the seller
  
  

• Title is recorded
  
  

• Buyer receives keys and possession

You may not need to be physically present. A properly executed POA allows your attorney to complete the entire process on your behalf.

Post-Closing Obligations

After closing:

• Set up utility accounts and condo board contacts
  
  

• File rental registrations if applicable
  
  

• Submit IRS forms for tax compliance
  
  

• Establish auto-pay for HOA or property taxes

Keep all documents organized for tax and compliance purposes.

Timeline Summary: How Long It All Takes

Final Advice for International Buyers

Buying property in NYC as a non-resident is entirely feasible with the right preparation. Focus on:

• Building a professional team early
  
  

• Understanding your legal and tax exposure
  
  

• Managing currency transfers carefully
  
  

• Structuring the transaction around your long-term goals
  
  

With a proper timeline and experienced representation, you can complete a secure, compliant, and rewarding purchase in one of the world’s most stable markets.