Luxury-Home Market Seen Threatened by Scrutiny in NYC, Miami

Rules require identity of limited-liability company owners
Many purchases in Manhattan high-end towers are made by LLCs

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By Oshrat Carmiel, Prashant Gopal, and Bill Faries

January 14, 2016 at 10:00 AM UTC

Updated on

January 14, 2016 at 3:46 PM UTC

For luxury-home developers and brokers in Miami and Manhattan who are already contending with slumping prices and slowing demand, the U.S. government’s decision to start scrutinizing all-cash buyers was more bad news.

The Treasury Department’s Financial Crimes Enforcement Network said Wednesday that it will seek out the identity of individuals behind limited-liability companies that pay cash for high-end residential real estate in Manhattan and Miami-Dade County. Starting in March, title insurers will be required to name the true “beneficial owner” behind the anonymous entities, FinCen said in a statement.