Miami and New York City are in a World of Hurt

The Biden administration has called for public comment on ways to reduce corruption in the US real estate market, as part of a broader effort to stamp out illicit financial activity.

The White House is paying particular attention to all-cash transactions in commercial and residential real estate, which senior officials warned were often conducted through shell companies and used to launder money.

It has proposed a nationwide expansion of reporting requirements that currently apply to all-cash purchases of residential properties valued at $300,000 or more in 12 metropolitan areas.

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Ahead of crafting any regulation, the government is seeking input on which types of real estate should be subject to scrutiny, the dollar value threshold, the geographic scope of the rules and who should be subject to reporting requirements, among other queries.

Specific feedback will lead to more targeted reforms and will help to “minimise the burden” on the real estate industry, a senior administration official said.

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