AgentInvesting

How will federal mandate for luxury buyer disclosures change the NYC market?

Protect yourself by being proactive
  • Agents of high-profile, luxury and off-shore clientele– although not the ones reporting names directly– are responsible for being better informed of their buyers.
  • The primary purpose for the law is to identify real estate investors who are avoiding city income taxes by claiming residency outside of the city or the United States.
  • The law is only set for six months, which leaves many in the real estate industry wondering what the future holds for luxury transactions and buyer privacy.

News of the National Treasury Department's mandate last Wednesday has spread throughout the luxury real estate sphere, but will the call for title companies to identify high-end real estate transactions have a large enough impact on agents in Manhattan to cause an uproar?Starting March 1, title insurance companies must disclose names of cash buyers purchasing properties over $3 million in Manhattan and $1 million in Miami. Agents of high-profile, luxury and off-shore clientele– although not the ones reporting names directly– are responsible for being better informed of their buyers. Some old practices, like receiving money wires from buyers overseas, probably aren't a good idea under the new law.The primary purpose for the law is to identify real estate investors who are avoiding city income taxes by claiming residency outside of the city or the United States. According to The New York Times, 89,000 of the city’s condos and co-ops (worth an estimated fair market v...

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