When a foreign, non-resident individual owns real estate in the United States, a death can create unexpected legal and tax complications — especially during a sale. Understanding these issues is essential for buyers, sellers, and real estate professionals involved in the transaction.
At Suma Realty, we make sure our clients understand the risks and are fully protected when acquiring U.S. property — particularly when international estate matters are involved.
When a nonresident alien (NRA) passes away while owning U.S. real estate:
- The IRS automatically places an estate tax lien on the property for 10 years, even if it does not appear in public title records.
- The lien remains in place until the estate files the required U.S. estate tax return and receives an official Transfer Certificate from the IRS.
- If the property is sold before the lien is cleared, the buyer may inherit the tax liability, often without realizing it.
This lien is not always recorded in the county’s public system — meaning a standard title search may show no problems, even when a federal tax claim exists.
Because of this risk:
- Closing agents must inform buyers about possible IRS estate tax exposure if the seller inherited a property from a nonresident owner.
- A closing agent who fails to warn the buyer may face legal liability.
- REALTORS® representing buyers also have a duty to disclose the potential issue and ensure the buyer is properly protected.
- If a REALTOR® handles funds on behalf of an estate that has not filed the required tax documents, they could also face additional responsibility.
At Suma Realty, we advise all international clients to take these steps when purchasing property from an estate:
✔ Confirm whether the previous owner was a nonresident alien
If so, assume an IRS estate tax lien may exist.
✔ Request proof of compliance
The estate must file the U.S. Estate Tax Return (Form 706-NA) and obtain the IRS Transfer Certificate.
✔ Ensure the closing agent is knowledgeable
Not all title companies understand these international tax rules. Work only with professionals experienced in foreign ownership transfers.
✔ Consult specialized tax and legal advisors
Estate tax for nonresidents is complex — expert guidance avoids costly mistakes.
For international buyers, investing in the United States offers security, growth, and long-term stability — but only when every detail is handled correctly.
At Suma Realty, we work exclusively with closing agents, attorneys, and tax experts who understand global clients’ needs. Our role is to protect your investment, eliminate unnecessary risks, and guide you confidently through every step of the process.
Whether you’re purchasing a luxury condo, a new-development unit, or an investment property, we ensure complete transparency — even in the most complex cross-border situations.
