Cash Sale Disclosure Rule expended to other counties in Florida
What impact will the new Cash Sale Disclosure Rule have on the Miami Real Estate market. Cash Sale is every sellers dream and magic word in Miami Florida. Home ownership is an American dream and something that many families try to achieve. Owning your own home gives you a sense of security, independence and also is a great tax break. With interest rates staying at such low rates the biggest challenge today’s buyers face is coming up with a down-payment. But what about cash buyers and more specific luxury real estate cash buyers. Buyers that are spending over the $1000000 for what is classified as luxury. They are not your typical first time homes buyers or move up buyers. But there is a catch!
You could be a move up buyer, where say you sold your primary residence or other real estate that you owned. This new rule applies to mainly the new buyer specifically foreign buyer that is off radar. We are talking buyers that have come to United States and want to invest in the real estate here and looking to buy a property over the $1 mil price.
Just to disclose, I am not an attorney and am not giving neither legal advise not accounting one either. One should talk to both an attorney and accountant as to what would be the best option for their need. And what would be the best way if any to structure this and what documentation would be required to back up the funds origin.
As of January of this year the Treasury Department instructed the title insurance companies to report the names of all cash buyers
making a $1 million dollar and higher purchases in Miami-Dade County. This new rule has also applied to other counties and states were cash transactions have been taking place. That is not to say that every transaction involving a multi million dollar deal is illegal or fishy.
It is not uncommon for luxury home buyers to remain anonymous by purchasing under the LLC, and many buyers use LLC for legitimate reasons, such as to protect their assets or tax considerations. Real estate has always been a safe and predictable investment if we do not count the last one of the worst real estate disasters.
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