When investing in real estate in the United States, there are a number of different legal compliance and laws that need to be considered. This blog will provide an overview of some of the key compliance and Legal issues to be aware of when making real estate investments in the USA.

Foreign Investment in Real Property Tax Act ( FIRPTA ):

One of the most important things to consider when investing in US real estate is the Foreign Investment in Real Property Tax Act ( FIRPTA ). This act can have a significant impact on your ability to profit from your investment, as it imposes taxes on the sale of US real property by foreign investors. If you are planning to sell your property within five years of purchase, it is important to be aware of the FIRPTA rules and regulations in order to avoid any costly penalties.

License from the US Department of Treasury:

Another compliance issue to be aware of when investing in US real estate is the requirement to obtain a license from the US Department of Treasury. If you are purchasing property for investment purposes, you will need to obtain a so-called “Treasury Dealer’s License”. This license allows you to buy and sell US Treasury securities, which are often used as collateral for real estate loans. Without a license, you will not be able to obtain financing for your real estate investment.

The USA Patriot Act:

Another compliance issue to be aware of when investing in US real estate is the USA Patriot Act. This act requires financial institutions to collect certain information from their customers, including foreign investors. The purpose of this act is to prevent money laundering and terrorist financing. As a result of the Patriot Act, you may be required to provide detailed information about your identity and your financial history when opening a bank account or applying for a loan.

Anti-Money Laundering Regulations:

In addition to the USA Patriot Act, there are also a number of anti-money laundering regulations that need to be considered when investing in US real estate. These regulations are designed to prevent criminals from using real estate to launder money. As a result, you may be required to provide detailed information about the source of your funds when making a real estate investment.

Insurance Laws:

When investing in US real estate, it is also important to be aware of the various insurance laws that apply. These laws require property owners to purchase certain types of insurance, such as liability insurance and fire insurance. Failure to comply with these laws can result in significant penalties.

Zoning Laws:

Another compliance issue to consider when investing in US real estate is zoning law. Zoning laws dictate how land can be used and what type of development can take place on a particular piece of property. It is important to be familiar with the zoning regulations in the area where you are planning to invest, as they can have a significant impact on your ability to profit from your investment.

Contract Laws:

When investing in US real estate, it is also important to be familiar with the various contract laws that apply. These laws govern the formation and enforcement of contracts, and they can have a significant impact on your ability to profit from your investment.

These are just some of the key compliance and legal issues to be aware of when investing in real estate in the United States. In order to comply with all of the different compliance and legal issues involved in investing in US real estate, it is important to seek professional advice from a qualified lawyer or accountant. They will be able to help you navigate the complex rules and regulations and ensure that you are able to profit from your investment.

At Di Martino Law Group you can  expect nothing but the best and most comprehensive legal services available. Our team of experienced professionals will guide you through every step of your real estate transaction, from start to finish. Contact us today to learn more about how we can help you with your next US real estate investment!