In connection with the recent case that the government in on an ongoing court battle with certain individuals regarding luxury homes being purchased with dirty money. There are private individuals who have not been much happy about the new yet temporary rule regarding disclosure requirement among insurance companies of their clients of real estate.
The FED is trying to crack down other individuals who have done purchases using laundered money. As a private individual, how would you like to be snooped on by the government, when purchasing luxury real estate that you can actually afford without having to do dirty deeds?
This is now the main issue in cash purchases among real estates since the new rule has been laid on Wednesday by the Financial Crimes and Enforcement Network (FinCEN). Looks like it would be much difficult to keep oneself private these days when it comes to real estate.
The government is now requiring all the insurance companies to identify all their buyers who made a purchase luxury real estate properties in purely cash deals and not through institutional financing.
This seems to be unfair, according to Daniel de la Vega, President of ONE Sotheby's Intl. Realty he said that he doesn't believe that it is fair that the majority be penalized because of the minority's faults. "There are many people with no criminal history who would simply like to keep their purchases private. This could be simply for privacy purposes of an athlete or entertainer, a Latin American buyer who could jeopardize the safety of their family in its country if his or her purchase is made public or even a local buyer who does not want people to know where they live."
As for FinCEN, they are just concerned that some of the cash purchases done by some individuals is a way of these people in trying to hide assets that may be a product of laundered money. The Department of Treasury just simply wants to combat this issue in the sector of real estate especially that since 2013 the numbers of cash buyers of homes began to rise.