How current events impact your business and real estate holdings

Showing posts with label foreign buyers. Show all posts
Showing posts with label foreign buyers. Show all posts

Friday, February 28, 2014

Is your buyer precluded from buying US Real Estate?

Check with the Office of Foreign Assets Control at the US Treasury before you help your client buy.

To use the Office's search features by person and country, click Resources on the page and find the feature that fits your need.

Remember, The Office of Foreign Assets Control administers and enforces economic sanctions programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.

So, its important to check the Office's Resources frequently as sanctions change and you need to know what the rules are today when working in real estate brokerage.

Taxation of Foreign Investors in Real Estate

Today we are teaching our course, Foreign Buyers, in NYC. Our students will begin to understand the implications of alienage in terms of real estate. We will also discuss the different rules for passive investments v. active investments. Real estate can be held in both fashions and its imperative to understand whether a 30% flat tax will apply on Gross Revenues or if instead a graduated tax will apply to Net Revenues. To help our students understand this topic further, we recommend reading U.S. TAXATION 

Monday, January 20, 2014

Free CE on 2/28 in NYC: Foreign Buyers (limited seating)!

Foreign Buyers

Instructor: Andrew Lieb, Esq., MPH

Credits: 3

Price: Free

February 28th, 2014: 11:00am to 2:45pm

Registration: Advanced Registration Required through 

International clients are all the rage … sometimes. Learn diverging perspectives on their ownership of US soil. Explore cultural sensitivity and anti-discrimination statutes while gaining an understanding of the real estate agents / educators need to familiarize foreigners with our local customs and laws. This course will split hairs between different levels of citizenship and the resulting rights and obligations afforded to purchasers. You will be familiarized with a multitude of reporting requirements and tax withholding statutes for purchasers, sellers and their property managers that can turn a foreign purchase into your worst nightmare, if ignored. After this course, the student will know what it takes to be a foreign buyer or the seller / property manager to such a buyer in New York.

Friday, August 02, 2013

The Real Deal's Not So Real Deal - Bill Introduction Means Very Little (Foreign Buyer Legislation)

The Real Deal reported yesterday on proposed legislation to reform the Foreign Investment in Real Property Tax Act (FIRPTA) in a manner that would have you believe that the Bill was destined to be law. This is a common theme with news media when they exaggerate the impact of a story to gain readership. However, The Real Deal is typically better than this and they should know better as their readership counts on them to lead the brokerage profession in New York City and beyond.

While the article does contain a great topic that should be discussed, whether there should be alien landholder disabilities in the US, The Real Deal should make clear what many know, that Bills rarely pass. In fact, accordingly to, the Bill has only a "2% chance of being enacted". So, discuss the topic, but know its not the law.

Remember, in real estate the rule is No Case, No Statute, No Talk - know the law as it governs your every move.

With respect to alien landholdings, its great that the Bill seeks to reduce restrictions on foreign investment, but remember those restrictions were created for some really good reasons in the first place. To illustrate, would you like a foreign national to own our fresh water supply; how about our trees or nuclear arsenal? What about taxes, should a foreigner be required to pay taxes and how can the Government make one accountable. To discuss these thoughts and more, stay tuned for Lieb School's real estate continuing education course, Foreign Buyers, which is coming soon.