The 7-step journey
The 7 steps below reflect the real order of a typical Canadian seller's file in Florida, FIRPTA included.
Step 1 — Prep the property and get an appraisal
Before listing, get an independent appraisal (broker CMA or formal appraisal) to position the price. Cleaning, paint, cosmetic repairs, HVAC dusting, irrigation check, and home staging if relevant. Gather documents: title, condo declarations if applicable, last 12 months HOA minutes, active insurance policies, property tax history, utility bills (FPL or Duke, county water, internet).
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Step 2 — Choose listing agent and sign post-NAR 2024 listing
Since the NAR 2024 decision (effective August 2024), buyer's-agent commission is no longer systematically paid by the seller. You negotiate listing commission with your agent (typically 2.5 to 3 %), and separately decide whether you offer buyer's-agent compensation (0 to 3 %). Most sellers still offer it because it facilitates transactions. The listing agreement fixes exclusivity duration (90 to 180 days), starting price, marketing terms.
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Step 3 — List on MLS and Realtor.ca or Centris
Your agent lists the property on the local MLS (Miami, Naples, Tampa, etc.). Professional photography, drone video if higher-end, 3D virtual tour. The property auto-syndicates to Realtor.com and Zillow. To reach Canadian buyers specifically, your agent can activate cross-listing on Realtor.ca (Canada) via CREA agreements, and Centris for the Quebec market.
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Step 4 — Evaluate received FAR-BAR offers
Offers come in via the FAR-BAR contract template. Each offer states price, escrow deposit, contingencies (inspection, financing, title), critical timelines, and seller concession requested (buyer's-agent commission, closing costs, repair credits). Compare offers globally, not just on price. A cash offer with no financing contingency is often superior to a higher offer with financing and aggressive inspection-resolution. Counter-offer negotiation through your agent.
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Step 5 — Prep FIRPTA 15 % withholding and seller disclosures
FIRPTA (Foreign Investment in Real Property Tax Act) imposes a 15 % withholding on the gross sale price for non-resident sellers, collected by the buyer via the title company. Partial exemptions: price under USD 300,000 with buyer's personal-use intent (withholding reduced to 10 % or 0 %), reduction request via Form 8288-B before closing. Seller disclosures (FAR-BAR) cover property condition, known damages, SB-4D milestone if applicable, HOA estoppel.
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Step 6 — Closing at the title company
The title company runs the closing. You sign the deed transferring title, and the title company collects buyer funds, pays seller-side doc stamp tax (0.7 % of price), withholds FIRPTA 15 % (sent to IRS within 20 days via Form 8288), pays the listing commission, settles pending HOA, and remits your net proceeds. Signing can be in person in Florida, or by FL-valid POA (U.S. consulate or U.S. notary execution).
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Step 7 — Recover FIRPTA withholding and transfer to Canada
After closing, you file your 1040-NR for the year of sale (the following spring). If real gain is less than the 15 % withholding, you recover the surplus 6 to 18 months after filing. On the Canadian side, you report the capital gain on the same year's T1 (Schedule 3), converting CAD the sale price, adjusted cost base, and fees. Foreign tax credit offsets U.S. tax paid. For fund transfer, use a specialist FX broker rather than the bank (0.3 to 0.7 % spread vs 1.5 to 2.5 %).
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Common mistakes
- Not budgeting for FIRPTA 15 % gross withholding and ending with a lower net than expected at closing.
- Selling in a tax-suboptimal timing (e.g. early January vs late December, shifting filing and foreign tax credit by a full year).
- Forgetting the Canadian capital gain calc (CRA) with CAD conversion at both purchase and sale dates, potentially different from U.S. gain.
- Signing an exclusive 6-month listing at 6 % without negotiating commission or duration.
- Transferring sale proceeds at the Canadian bank with an unfavourable 2 % spread vs 0.5 % at a specialist FX broker.
- Filing the FIRPTA reduction Form 8288-B too late (must be submitted to IRS BEFORE closing to take effect).
- Selling via LLC thinking FIRPTA is avoided, but a Canadian-owned LLC is treated as transparent: FIRPTA still applies.
Typical costs to expect
| Cost item | Typical range | Source |
|---|---|---|
| Listing commission | 2.5 to 3 % of price | Florida Realtors |
| Buyer-agent commission (offered or not) | 0 to 3 % of price | NAR 2024 settlement |
| Seller-side Doc Stamp tax | 0.7 % of price (0.6 % Miami-Dade) | FL Statute 201.02 |
| FIRPTA withholding | 15 % of gross price (or 10 % or 0 % per exemptions) | IRC §1445 |
| Seller's title insurance (FL custom) | 0.5 to 0.9 % of price | FL OIR |
| Legal and closing seller costs | USD 1,500 to 4,000 | FL practitioners |
| Typical seller total (excluding recoverable FIRPTA) | 7 to 9 % gross | FL practitioners |
Indicative timeline
Prep and broker selection 2 to 4 weeks, active listing and offers 30 to 60 days, buyer inspection 10 to 15 days, buyer financing 30 to 45 days if applicable, closing 30 to 45 days after accepted offer. Typical total 60 to 90 days listing-to-close. FIRPTA recovery via 1040-NR 12 to 18 months after closing.
FAQ
Can I avoid FIRPTA?
Not as non-resident. You can reduce withholding from 15 % to 10 % if buyer purchases as personal residence and price is under USD 1,000,000 (but not under USD 300,000), or to 0 % if price under USD 300,000 and buyer's personal residence. You can also request a Withholding Certificate via Form 8288-B to adjust withholding to actual gain before closing.
How to optimize CA + US tax timing?
Selling at end of calendar year aligns U.S. 1040-NR and Canadian T1 on the same tax year, simplifying the foreign tax credit. Selling early in the year shifts and complicates.
File in April Canada or USA first?
File 1040-NR first (June 15 deadline for non-residents, with automatic extension on request). Use U.S. tax paid as foreign tax credit on Canadian T1 (April 30 deadline).
How to move hundreds of thousands USD to Canada?
Three paths: direct bank wire, specialist FX broker (Knightsbridge, OFX), or multi-currency platforms (Wise). Specialist FX broker usually offers the best rate above USD 50,000.
Can I sell by power of attorney from Canada?
Yes, but the POA must be executed per Florida rules: before a U.S. notary, at a U.S. consulate, or via Hague apostille. A standard Canadian POA is generally not accepted by title companies.
Does selling an LLC avoid FIRPTA?
No. A single-member LLC is tax-transparent (disregarded entity); FIRPTA applies as if you sold directly. A multi-member LLC is partnership-treated and FIRPTA application depends on the percentage of non-resident owners. Consult a cross-border tax specialist.
Editorial team and essential disclaimer
Editorial team. This journey is written and reviewed by the canadaflorida.com editorial team. The authors are not licensed real estate brokers, attorneys, or tax practitioners. The journey relies on the primary sources (IRS, Florida Statutes, OSFI, CRA, Florida Realtors, NAR) cited in the manual articles it links to.
Essential disclaimer. This journey is educational. It is not real estate, legal, tax, or immigration advice. U.S. and Canadian rules evolve. For each step, consult the dedicated manual articles and a licensed professional in the relevant jurisdiction.