Americans celebrate their diversity. We're a melting pot where peoples from around the world join in depositing their ethnicity and culture into the recipe called the American Experiment.

Over the last 200 years, however, America has developed its own culture. While we are a nation of nations, we have crafted a certain "American Way" of doing business.

In real estate, it goes something like this. The seller places his or her house on the market and waits for a contract. A buyer hires an agent who then completes a contract (usually maintained by a local Realtor association) and offers it to the listing agent who presents it to the seller. After counter-offers and haggling, all parties sign the contract and arrange a settlement date.

In the American scenario, everything is set. Nothing should change from the time of the ratified contract (usually after all inspections and appraisals have been done) until everyone gathers on settlement day and sign papers.

In many cultures, it's not over until it's over, meaning, negotiation continues until the property changes hands. If you are working with a buyer from some cultures, you could find yourself about to sign the escrow papers and suddenly, they want to drop the price $10,000.

Breach of contract? Possibly. Unfair business practice? Maybe. A clashing of cultures in the business world? Definitely.

If a buyer fails to perform the contract, most real estate agreements call that "breach of contract" and the buyer could lose the earnest deposit money. Now, in some states, that's not really a lot of money, in others, it could be thousands of dollars.

Alternately, a seller who tries to back out can be sued for "specific performance," and will be forced to sell the home to the buyer anyway.

Read the fine print on your sample contract to see if mediation, arbitration or even small-claims court is required when buyers and sellers reach an impasse.

Nevertheless, these culture clashes in real estate transactions will likely grow in the future. The U.S. Census reveals the largest influx of immigrants to the U.S. in over 70 years; meanwhile the percentage of the U.S. population that is foreign-born is at its highest level since the 1930s.

A study by the Fannie Mae Foundation found that:

• America's foreign-born population doubled from about 10 million to 20 million between 1970 and 1990 and was expected to reach 31 million by 2000.

• Newcomers generally become homeowners several years after arriving in the U.S., at the point when they form households. Immigrants from Latin America, the Caribbean, Asia and the Pacific Islands will generate the most households in the next 15 years.

The way foreign-born buyers shop, negotiate and communicate in the real estate transaction may be much different than native-born buyers. What native-born Americans consider appropriate behavior in negotiation proceedings may look peculiar or even insulting to a foreign-born buyer.

For instance, if you like the price on a contract, you may give the buyer an "okay" sign (joining the index finger and the thumb together). But a Japanese buyer may think you want more money, while a Tunisian buyer may scurry out the door, since you just made a death threat.

While American men may try to butter up a female buyer or seller with flowers to "sweeten" the deal, a Chinese woman may feel embarrassed or even mortified since you just asked her to marry you.

If you have a 2 o'clock appointment with Arabic sellers, don't think they're standing you up when they show up at 3:30 p.m. That culture allows two hours leeway when it comes to appointments.

Even Europeans have their ways of communicating. Be careful about folding your arms over your belly while talking with people from Finland -- or you may be considered a very arrogant person. And Germans would expect you to address them by their title every time you greet them, not by their first names as casual Americans are accustomed.

While immigrants and foreign-born buyers become a larger part of the American real estate experience, we home-bodies need to prepare for it.

RESOURCE: The Fannie Mae Foundation offers a free home buying guide, published in English, Chinese, Korean, Vietnamese, Russian, Portuguese, Polish or Haitian-Creole. It's online at www.homebuyingguide.org. The guide covers such topics as the home-buying process, how to finance a home and how the mortgage process works.

To receive a copy in Spanish call 800/782-2729. For any of the other languages listed call 800/688-4663.

Published: February 8, 2002

Use of this article without permission is a violation of federal copyright laws.

Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.