The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has rolled out new nationwide reporting rules for real estate transactions — and they could affect how some closings are handled. What’s Changing FinCEN now requires title companies and settlement agents to report details on all-cash real estate purchases, especially when the buyer is an entity (e.g.,…
When someone buys a condominium, the parking space that comes with the unit might seem simple — but not all parking is the same! In most condos, parking spaces fall into two categories: deeded spaces and limited common element (LCE) spaces. Knowing which type is being sold makes a big difference in ownership rights, flexibility,…
Why It Can Cause More Problems Than It Solves Parents sometimes think it’s a good idea to put their child’s name on the deed to a home or investment property. While the intention may be good — planning for the future or “avoiding probate” — adding a minor to title can create serious problems. Here…
The Foreign Investment in Real Property Tax Act (FIRPTA) is a U.S. law that affects real estate transactions when a foreign person sells U.S. real property. It requires buyers to withhold tax at settlement to ensure the IRS collects taxes owed on the sale. Below is a clear overview of the current FIRPTA rules. Who…
It’s a little-known fact that investment real estate can be purchased with IRA retirement funds if special requirements and procedures are satisfied by your prospective clients – and you can act as their agent! 🏠 Step-by-Step: Buying Real Estate in an IRA Step 1. Client Sets Up a Self-Directed IRA (SDIRA) with a custodian that…
When you sell your primary residence, the IRS gives you a major federal tax break under Internal Revenue Code §121. Here’s what homeowners should know before listing their property. The Capital Gains Exclusion This exclusion applies only if the home was your primary residence. Ownership and Use Test To qualify, you must have: The two…
When you are looking to purchase a property, you may not be aware of the legal issues that could arise. These issues are more common than you may think. Title insurance can protect you and your property from a wide range of problems tied to the property. A title insurance policy provides peace of mind…