Because of the new sanctions, it will be harder for Russians to buy housing in the US

US senators, seeking tougher sanctions against Russia, intend to restrict Russians' access to the American real estate market by imposing additional restrictions on its purchase.

Фото: Depositphotos

The bill on new sanctions against the Russian Federation, prepared by Republicans Lindsay Graham and Corey Gardner and Democrats Robert Menendez and Ben Cardin, obliges all companies insuring housing transactions in the United States to inform the Ministry of Finance about immigrants from Russia buying up expensive residential real estate in America, writes Newsru.com.

If the document is approved, then the US Treasury Department will have 90 days to develop a document obliging insurance companies to provide officials with information about Russians and companies under their control who buy real estate in the country.

The document states that the disclosure will be subject to data on the Russians-beneficiaries of companies in case they control more than 25% legal entity. The authors of the bill do not specify which real estate will be considered elite. According to their plan, the Ministry of Finance can set this bar independently.

According to experts of the real estate market, this initiative will cause serious problems only for those Russians who are included in the US sanctions list.

Realtors remind that insurance companies traditionally play a significant role in concluding transactions with residential real estate in the United States. The institute of title insurance is widespread in the country: against the risks of loss of acquired property as a result of actions by third parties or events preceding a transaction that may lead to its alienation.

If the acquired property was obtained by the previous owner in violation of the law or it may be levied, then the title insurance will allow the new owner to recover the losses. Therefore, insurers traditionally request a large amount of information from customers.

According to the US National Association of Realtors (NAR), from April 2017 to March 2018, foreign investors invested a total of $121 billion in the country's residential real estate, which is 21% less than the previous same period. The reasons for the decline include rising property values, a stronger dollar and rising political tensions.

Russians are not among the most active homebuyers in the United States. The leaders in terms of the volume of transactions are citizens of China ($ 30,4 billion), Canada ($ 10,5 billion), Great Britain ($ 7,3 billion), India ($ 7,2 billion) and Mexico ($ 4,2 billion).

In 2017, in Miami, the Russians accounted for the entire 2% of housing transactions, which in fact corresponds to the same indicator of the last six years.

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