Now that the new disclosure requirement rules related to all-cash real estate purchases have gone into effect, there were worries about the disruptions it may cause to local sales, but it seems the effect may not be all that significant.  With these new regulations, the title company must report any all-cash residential purchase over $1 million to the federal government should it involve a cashier’s check, certified check, travelers check, cash or money order.  These new rules went into effect on the first day of this month.

The lack of any significant effect appears to be the result of most transactions involving a wire transfer, which can be traced and, therefore, is not part of the new disclosure rules.  As to why these rules were enacted in the first place, it was due to the large number of all-cash transactions in Miami-Dade, over 50 percent in fact.  They are meant to prevent money laundering and are expected to expire on August 27.  However, despite most of the transactions being legitimate, there are rumblings that the rules may be extended beyond this date and new disclosure rules may be instituted.

This update is brought to you by Miami Beach waterfront rentals, spearheaded by Miami Beach real estate agent and broker Julian Johnston.  We provide information on homes and condos throughout the barrier island including the Miami Beach Islands, and you can easily customize your rental search by price and the dates you’ll be staying.  Call 786-408-0322 for more information on rental properties in Miami Beach and beyond.