AC Realtors - discussion on other board

[peterbj7]

I read this, posted by Martin Smith.

I hesitate to post this as I don't have a 'dog in this hunt' but feel that I should remind everyone that you and your agent can agree to anything that is acceptable to both parties (so long as it is not against public policy or illegal) including having any taxes due be paid from what would otherwise be the agent's commission. Nothing nefarious, nothing sneaky just good old English common law of contracts at work.


I can no longer post on that board, but I wanted to comment on this point.  I wanted to point out that under English Common Law, any money paid under a contract is totalled up regardless of the reason given for each part of it, and any tax due is assessed on that total sum.  You cannot in these circumstances "pay someone's tax for them".  I can arrange things so that the effect financially is as if I have paid the GST for a client, but I cannot actually pay that GST for them.  It's not illegal, simply void.

[martinbsmithjr]

Again, this is a distinction without a difference. I don't know about you but I would never have the entire purchase price for a property be paid to a real estate agent which would be in my view financially dangerous. Of course the money goes to an escrow agent and then the escrow agent disburses the money to the various parties including the government for the tax. I think the only reason this is such a hot button is that under the scenario I describe the real estate agent's commission is reduced from what the 'norm' whatever that is. Once you stop being defensive about the issue then it makes perfect sense.

[Inplub]

How safe is an escrow account when the account is in the USA, the property is in Belize and you live some place else? Who would you TRUST with all that money?

[martinbsmithjr]

In my case I have used a reputable Belize law firm and have had no trouble at all with two transactions which were well over a million dollars US in total.

[Milfred]

As a Canadian....between USA and Belize...that's a tough question LOL ....but I think I would have to choose U.S.A

[martinbsmithjr]

Well, actually my Florida lawyers oversee everything for me.

[Inplub]

I take it you did not trust your realtor in Belize or the Belizean lawyer can I ask why?

[martinbsmithjr]

I trusted both of them but my experience tells me that Ronald Reagan was right 'trust but verify'. Plus there are tax and liability issues that I need to be particularly concerned about that the people in Belize wouldn't be either knowledgeable of or about.

[Inplub]

Thank you for your answer.

[deadserious]

With our first land purchase we used the escrow account of the attorney handling the transaction.  With our second, we used the escrow account of our Realtor.  It really depends on the situation and how much trust you've gained in the people you are dealing with.

[ragman]

Inplub,  are you doing a complicated transaction?  Are you buying a vacant piece of property?  If you don't have tax, estate, or other issues and you are buying an existing building or buying from one of the reputable builders I would think that you will be find using Belize agents and their escrow accounts. 

I did my due diligence used one of the Island's well known real estate brokers and verified the people building my place and had no problems what so ever. Even after the economy sunk. At first sending large sums of money to a foreign country was a little scary no doubt, but most of the well know people are very legitimate and if you still have doubt use a Belize attorney.  Look you are not going to have the protections you are used to if you are a US citizen but if you deal with good people this lessens the chance of problems or disputes. Also it helps to be reasonable on your part because nothing, I'll say that again, NOTHING happens quickly in Belize.  Smile and enjoy it. 

Good luck. 

[Inplub]

Ragman, no it is not complicated I am trying to sell a property with an agent in San Pedro. I was a little confused with Martin saying he used a Belize Law firm and not an agent and then said he used his Florida lawyers. I was just wondering why. He answered and I am happy with that. I have had dealings with 3 realtors in San Pedro involving property, 1 good, 1 not so good and 1 very bad. BTW I have lived in San Pedro for 4 years, but that was a few years ago. Things change a lot there.

[BettyJ]

Due diligence.  Real estate laws and agents operate quite differently than the states,,,  so don't just take someone's word for it.   Not so sure it has anything to do with an individual agent's honesty as they might truly believe what they tell you.  VERIFY BEFORE YOU BUY OR LIST!

[martinbsmithjr]

This is getting out of hand. I said I used a Belize real estate agent and also a Belize lawyer but I did have my lawyers here in Florida supervise things for me. So I was casting no aspersions on anyone in Belize or outside. However, being careful is something that costs very little money and can save you a lot. I once had my Czech Republic lawyers discover that the small hotel I was going to buy really wasn't even owned by the people trying to sell it. In many places in Eastern and Central Europe the land can be owned by someone different than the building and in Italy you have to make sure you get the permission of the entire extended family to ensure that you get good title.

[Inplub]

I am sorry to disagree with you Martin, but it is not getting out of hand you said “In my case I have used a reputable Belize law firm and have had no trouble at all with two transactions which were well over a million dollars US in total”.

You then went on and said “Well, actually my Florida lawyers oversee everything for me”. You also added “I trusted both of them but my experience tells me that Ronald Reagan was right 'trust but verify'. Plus there are tax and liability issues that I need to be particularly concerned about that the people in Belize wouldn't be either knowledgeable of or about.”

My final piont is you never said you used an agent but you did say “I don't know about you but I would never have the entire purchase price for a property be paid to a real estate agent which would be in my view financially dangerous.”