What the new cash buyer rules mean for you!

In some cities, most cash sales will have to be reported to regulators

Perhaps common knowledge to those that purchase with cash, buyers moving to Florida after the sale of their home in Northern and Western states may encounter these regulatory measures. The changes mean the identities of buyers of almost all-cash purchases in some counties will have to be reported to the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Identifying cash buyers of luxury real estate has helped ferret out illicit activity  so well that the U.S. Treasury Department is expanding previous regulations to more U.S. counties and lowering the sales price threshold for reporting.

In January 2016, in an effort to combat money laundering, FinCEN announced title insurance companies would be required to identify the human beings behind any cash-paying “shell companies” that buy high-end residential real estate in New York City and Miami at or above certain million-dollar price points.

Other “geographic targeting orders” (GTOs) put out by the department have expanded the list of affected markets and price points since then and earlier this month, the department issued its most widespread order yet.  The order is effective Nov. 17, 2018, through May 15, 2019.

Now, title insurance providers in these areas are required to disclose the people behind any buyer companies for any all-cash transactions of residential real estate at or above $300,000:

  • The Florida counties of Miami-Dade, Broward and Palm Beach are a few noted;

Given that the median sales price of a home in many of these counties is well above $300,000, that means virtually all cash purchases of homes in those areas will have to be reported to FinCEN.

Resources Inman News Nov. 27 by Staff Writer Jim Dalrymple. 

Author: danswingblog

Welcome to my Blog site. I don't provide this information to boast, I humbly provide this, so you are informed of my qualities and experience. Since the first of 2017 Dans averaged close to $1,000,000 in sales monthly. Dans accomplishments lend wisdom and credibility that I'm proud of. An informed understanding of who you elect to represent you is as important as the investment you hold in your hands. Dan has celebrated over 17 years as a full time Realtor. Successfully listed and sold homes well through the 7 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation of Integrity, Expertise, and Focus. Our customers deserve the best. Currently a "FULL TIME" Realtor listing and selling homes in Tampa Bay Golf and Country Club and provides B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to RE/MAX Marketing Specialist in January 2012. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Received license in 2000, took the class to sell his own properties, coerced by instructor to pursue an active license. Assist residential and commercial brokers, investors and individuals with real estate needs. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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