US crackdown on luxury homes bought for cash

For luxury home developers and brokers in Miami and Manhattan who are already contending with slumping prices and slowing demand, the US government’s move to start scrutinising all-cash buyers marks more bad news.

Yesterday, the Treasury Department’s Financial Crimes Enforcement Network (FinCen) said it will seek out the identity of individuals behind limited-liability companies that pay cash for high-end residential real estate.

Starting in March, title insurers will be required to reveal the true “beneficial owner” who is behind the anonymous entities.