Your money matters, especially when you’re looking to buy a new home.
Starting March 1, the federal government is adding a new rule for cash buyers of real estate.
The rule will require additional information for those who create a legal entity or trust that acquires homes for the benefit of someone who wants to remain anonymous.
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“If you’re purchasing a property and you have a loan, there’s a clear paper trail on where the money is coming from and who it is coming from,” John Ahnemann with Keller Williams Realty Integrity Lakes said. “When it’s being purchased with cash, they may not have that understanding or knowledge of where the money is. At the end of the day, the government wants to know where the money is coming from. It’s as simple as that.”
The new rule only impacts those who create a legal entity or trust who pay in cash. There is no reporting requirement when the homebuyer is an individual.