The number of foreign investors in the US has been rising at a rapid rate. Skyrocketing real estate prices in foreign countries and the improved economic setting in the United States have been considered as some of the contributing factors for the increased foreign investments in the country. With the emergence of financially stable foreign buyers, real estate cash transactions are not anymore uncommon. In fact, buyers paid cash for about 64 percent of homes purchased in Florida between January and March 2014, the highest rate in the U.S., according to RealtyTrac, a property-data firm in California. With cash payments, the real estate transaction processes become much faster and easier.
If you have the intention of purchasing a real estate property with cash, you have to consult a real estate attorney who will help you avoid any ‘’traps’’ that may delay or complicate your business transaction.
While cash is always an acceptable payment method, there might be limitations associated with the amount of money involved in the transaction. According to the US law, all transactions over $10,000 must be reported to the federal government. There is a large number of foreign buyers that are unaware of this condition. This requirement involves all parties that take part in the transaction, including attorneys, lenders, realtors and closing companies. The goal of the procedure is to prove that the funds used in the transaction have been legally obtained.
Also, foreign ‘’cash’’ buyers need to be aware that financing a real estate purchase with a loan from a foreign lender can be also viewed as a cash transaction in the US. The reason for that is the fact that the loan is closed in a foreign territory and transferred to the United States just for the property acquisition.
There might be additional laws and regulations pertaining to each individual case and transaction. That’s why it’s important to consult an attorney who will clarify all ambiguities and facilitate your transaction..