US Property Guide
Before you buy in the United States
US transactions differ from Korea in sequence, safeguards and tax. This page gathers what Korean clients ask first.
Process
The process in eight steps
Purpose and budget
Living, schooling, investment or a second home each point to different regions and property types. Decide early between cash and a mortgage; non-resident buyers can borrow, usually with a larger down payment.
Buyer agent agreement
Since August 2024, buyers in the US generally sign a written agreement with their agent, including compensation, before touring homes.
Proof of funds
Offers come with proof of funds or a loan pre-approval. Plan the timing and route of remittance from Korea at this stage.
Making an offer
A written offer sets the price, earnest money deposit, contingencies (inspection, appraisal, financing) and closing date. In popular areas, several offers often compete.
Opening escrow
Once accepted, a neutral escrow or title company holds the funds and documents. In some eastern states, attorneys handle the closing.
Due diligence
Inspection, appraisal, title search and title insurance, and review of HOA documents are completed within set deadlines.
Closing
Funds are wired, documents signed and notarised, and the deed recorded with the county. Contract to closing usually takes 30 to 45 days, less for cash.
Ownership
Property tax, HOA dues and insurance follow; renting it out adds a property manager and US tax filings.
Korea vs US
How it differs from Korea
| Topic | Korea | United States |
|---|---|---|
| Agents | One agent often acts for both sides; fees capped by law | Separate listing and buyer agents are the norm; fees negotiated, buyer side set by written agreement |
| Listing data | Portals, asking prices | MLS-based, with sale history, taxes and disclosures widely available |
| Deposit | Usually 10% of price | Usually 1–3%, varying by market |
| Safeguards | Title register check and agent disclosure | Escrow, title insurance, inspection |
| Contract to close | Usually 1–3 months | Usually 30–45 days |
| Holding tax | Property tax, comprehensive real estate tax | Property tax by state and county; in California about 1% of purchase price plus local levies |
| Renting | Jeonse and monthly rent | Monthly rent only; no jeonse |
| Foreign buyers | Reporting required; check local permit rules | Few federal limits, but some states restrict buyers from certain countries |
| On sale | Capital gains tax | Non-resident sellers face FIRPTA withholding, generally 15% of the price |
Regions
Regional notes
CA
Southern California · LA and Orange County
Planned cities with strong schools, such as Irvine, and a wide Korean community. Property tax is based on purchase price; newer communities may add local assessments.
For Korean clientsSchools · Korean community · check wildfire insurance costs
CA
Northern California · Bay Area
Tech-driven demand keeps prices high, and homes in strong school districts often draw multiple offers.
For Korean clientsTech and assignee families
NY
New York City
Much of Manhattan is co-op housing, which needs board approval, so foreign buyers usually choose condominiums. Purchases of $1M or more carry a buyer-paid mansion tax.
For Korean clientsCondos · second homes · students
NJ
New Jersey · Bergen County and Fort Lee
Commutable to Manhattan with an established Korean community. Property tax rates are among the highest in the US, so plan holding costs early.
For Korean clientsKorean community · high property tax
HI
Hawaii · Honolulu
Popular for second homes and long holds. Always confirm whether land is owned (fee simple) or leased (leasehold).
For Korean clientsSecond homes · check land tenure
TX
Texas · Dallas, Austin, Houston
No state income tax, offset by higher property tax rates. Korean companies' expansion has added assignee demand.
For Korean clientsAssignees · no state income tax
For Korean Residents
Checklist for Korean residents
- Overseas acquisition reportingKorean residents buying abroad report to a foreign-exchange bank under the Foreign Exchange Transactions Act before remitting, and report again after acquisition.
- Korean taxOverseas rental income may be reportable in Korea, and residents selling property abroad may owe Korean capital gains tax.
- US taxRenting out requires US income tax filings, possibly with an ITIN; selling triggers FIRPTA withholding.
- Ownership structure and estateThe US estate tax exemption for non-resident aliens is only $60,000. Decide in advance whether to hold personally, through an LLC or in trust.
- Source of fundsAgree limits, documents and exchange timing with your bank early; escrow companies verify the sender closely.
- ProfessionalsLine up tax advisers in both countries, your foreign-exchange bank and, where needed, a US real estate attorney before you sign.
This guide is general information, not legal or tax advice. Rules and rates change; confirm with professionals in both countries before you transact. US transactions are handled by partner agents licensed in the relevant state.
Discreet Access · USA
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