Financing in San Francisco>Question Details

Manpreetsarna, Home Buyer in Irvine, CA

How long does it take to transfer cash from China to US for buying house? Had 5 weeks to close and given 5 more weeks extension to buyer. No money yet

Asked by Manpreetsarna, Irvine, CA Fri Aug 30, 2013

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Hi--I've worked with several clients in the past year who have transferred large sums of cash from their accounts overseas in order to purchase property in San Francisco.

In each case, we worked with their banking institution prior to writing an offer so we would be aware of the time it would take to wire in the funds. In all cases, their banks wired the money fairly quickly---within a few days, at the most.

If there is a delay in the wire transfer, there could be multiple reasons for that. But my experience has been that if the money is available, it can be easily wired.
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1 vote Thank Flag Link Tue Sep 10, 2013
I think you need to speak with someone who is informed on this matter....maybe an attorney familiar with buyers from overseas..in particular, from China.

I just met with Chinese buyers yesterday, and part of our meeting was discussing how they were going to transfer cash to the US in order to purchase a home.

The problem is......China limits how much money can be transferred out of the country in a year - there is a limit.......... and $800,000 way exceeds it!

In my opinion, their money should already be here, in place, before signing a contract, or be in a country that would allow such a large transfer in a relatively short period of time.
1 vote Thank Flag Link Sat Sep 7, 2013
That seems like an unusually long period of time. Presumably the buyer was buying in cash? If so, they should have been better prepared to execute a cash offer which traditionally closes a whole lot sooner than a buyer who needs to get a loan.

In the meantime, you are losing valuable time marketing the property to other potential buyers who could have closed escrow by now. When you accepted the offer, did you ask for proof of funds? From a US bank?

Review your contract for terms and conditions. If the time has past for certain things to happen, did you issue a Notice to Buyer to Perform? If the buyer doesn't within the time period you specified, then you have the right to issue a cancellation of escrow, and move on.

Good luck.
1 vote Thank Flag Link Sat Sep 7, 2013
They had taken a loan for some amount from a US bank also. And showed proof of funds in China and approved loan in US.
Flag Tue Sep 10, 2013
It depends on how much and the manner by which the funds are being transferred. 10 weeks seems a little long to me. Part of the problem may not be the actual transfer, but taxes and other red tape may be slowing the process down. Don’t get stuck waiting. Talk to your agent about options.

Maybe you could market your home for backup offers while you are waiting? If your current buyer comes through....great. If you get a backup offer then you can give the current buyer the choice to close the deal within a reasonable amount of time or you can move forward with your new offer.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
1 vote Thank Flag Link Sat Aug 31, 2013
JR has a great strategy for your agent to continue to market and seek backup offers. It's not unusual that deals don't close for one reason or another. A good agent will help you with options and by keeping an offer on track.
Flag Thu Sep 5, 2013
They were to transfer 800K.........
Flag Sat Aug 31, 2013
Thanks.
Flag Sat Aug 31, 2013
As an update - I just received an email from my Chinese buyer with the following comment - not sure if your situation has been rectified by now or not, but apparently money transfers need to be addressed in advance, as it's not easy to get money out of China:

"As you known, the foreign currency is controlled by the government in China, We are not entitled to exchange our Chinese RMB into US dollars to pay for the house.( only US dollar $50,000 per year per person allowed nowadays)......................"

Cash purchases do happen, of course, but they need to be creative in how they arrange the details.

Good luck!
0 votes Thank Flag Link Wed Sep 11, 2013
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