Concerned about illicit money flowing into luxury real estate, the Treasury Department started identifying and tracking secret buyers of high-end properties. The initiative was put into place in March 2016 in two of the nation’s major destinations for global wealth: Manhattan and Miami-Dade County. The program has now been expanded to Los Angeles and San Diego counties as well as three counties around San Francisco.
The initiative by the Treasury Department is part of a broader federal effort to increase the focus on money laundering in real estate. The purpose is to obtain information about the identities of the individuals behind the all-cash purchases made by shell companies that shield purchasers’ identities. Treasury and federal law enforcement officials said they were putting greater resources into investigating luxury real estate sales involving shell companies, such as limited liability companies, partnerships, and other entities.
Real estate prices of luxury homes in California have benefited enormously in recent years by the influx of wealthy foreign buyers who often buy with all cash. Many of those buyers do not use their own names in the transactions. They do so for many different reasons, chief among them is privacy.
Future investigations will focus increasingly on professionals who knowingly or unknowingly assist in money laundering. At this point, the Title companies will be required to obtain the identities of the persons behind the shell companies. This includes obtaining a copy of a drivers’ license, Passport or other official government proof of identity.
In California, the definition of a luxury property is $2 million and above. There are a lot of properties that fit that description in our local Los Angeles.
How will this new regulation affect our local real estate markets? It remains to be seen.
You can read more in this LA Times articles.
If you would like to discuss this with me, please feel free to email me.
Nancy has been licensed to sell real estate since 1991. This includes sales experience in residential, land and investment properties. Due to her vast experience and expertise in the handling of complicated real estate transaction, she as the chosen as the Official Real Estate Sponsor of the Pasadena Bar Association for 5 years.
Nancy approaches each home sale as a new work that will be given a glorious Premiere! The staging, set design, and presentation all result in her listings being the “buzz” all over town. Nancy harnesses the power of the Internet to give her listings a competitive edge. She sees the Web as the most valuable way to respond to the constantly changing real estate climate. Nancy has the experience, knowledge and flexibility to harness the power of the Web in real estate transactions to get her sellers’ properties the best exposure, worldwide.
Like most people in this field, Nancy had another career before entering real estate. After graduating from Northwestern University School of Music, she attended the Juilliard School. Nancy went to Europe for the summer to continue her vocal training and stayed for 12 years! She sang professionally as a lyric soprano soloist in Austria, Switzerland, and Germany. Nancy is fluent in German and has a very good ear for languages! Her years of living abroad have given her a deep understanding of Buyers and Sellers from varying cultures and traditions. This experience is a valuable tool in understanding client needs and translates into a superb skill in negotiating on behalf of her clients. The experience of living in Europe as well as recent trips to visit family in Asia, she has a deep understanding of varying architectural and decorating styles.