Cross-border closings between Canadian buyers and US properties involve FIRPTA withholding (15% of gross sale price for foreign sellers), ITIN application timing, Canadian-side tax reporting (T1135), wire-fund routing across two banking systems, and identity verification that differs from US-domestic deals.
The Five Cross-Border Workflow Differences
FIRPTA withholding when a foreign seller is involved (15% of gross), ITIN for foreign buyers receiving rental income, dual-bank wire timing (3-5 business days vs 1), enhanced identity verification under BSA/FinCEN GTO rules in covered metros, and Canadian capital gains reporting on the disposal of US property.
The Florida and Arizona Canadian-Buyer Markets
Florida and Arizona account for the bulk of Canadian buyer activity. Snowbird purchases in Phoenix metro and Naples/Sarasota dominate. TCs working these markets need FIRPTA workflow, ITIN coordination with the seller’s accountant, and a relationship with cross-border-experienced title companies.
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Frequently Asked Questions
What is FIRPTA withholding and when does it apply?
FIRPTA (Foreign Investment in Real Property Tax Act) requires 15% withholding on the gross sale price when a foreign person sells US real property. Exceptions: sale price under $300,000 with buyer-occupancy intent (0% withholding) or $300,000-$1M with same (10% withholding).
Do Canadian buyers need an ITIN to close on US property?
Not always to close, but yes if they will rent the property or receive any US-source income. ITIN application via Form W-7 should start at contract execution; processing takes 7-11 weeks.
How long do cross-border wires take?
3-5 business days for international wires versus 1 day for US-domestic. Plan the wire timing accordingly; do not push closing dates against this constraint.
Do cross-border closings require special title insurance?
Standard ALTA title insurance covers the buyer regardless of nationality. However, lenders may require additional verification for foreign-national mortgages, and cash purchases skip lender requirements entirely.
What records does FinCEN require for cash purchases in covered metros?
Title companies in covered metros (Miami-Dade, Manhattan, Los Angeles County, parts of TX, MA, NV) must file beneficial-ownership reports for cash purchases above the threshold. The TC coordinates document collection but the title company files.
Related reading: Best TC software 2026, AI transaction coordinator, TC checklist.
Written by Vikas Malpani
Vikas Malpani is the CEO and Co-Founder of ReBillion and a CAR-Certified Transaction Coordinator. A serial real estate technology entrepreneur with 15+ years across technology and real estate operations, he was named to MIT Technology Review's TR35 list of young innovators. At ReBillion he leads the AI systems that deliver compliant, accurate transaction coordination for brokerages and agents across all 50 US states. Connect with Vikas on LinkedIn: https://www.linkedin.com/in/vikasmalpani/
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