Real Estate Beneficial Ownership
Year after year, foreign investment in the United States has increased by billions, making it the world’s top destination for inbound capital. Additionally, cross-border transactions on a global scale have continued to increase as multinational investment platforms seek international opportunities to deploy capital and raise funds.
The continual rise of foreign direct investment (FDI) has led to many countries requiring in-bound investors to comply with certain reporting and disclosure requirements; in some circumstances, the regulations prohibit the intended inbound investment. At the heart of many of these regulatory requirements is the disclosure or regulation of the beneficial owner of the investor. Whether intended to address national security concerns, food security, or criminal activity, these regulatory matters could spell legal woes and hefty fines for companies unaware of foreign ownership reporting requirements and limitations on ownership.
Our Capabilities
- Advocating for public policy issues relating to FDI and other beneficial ownership matters.
- Aiding FDI transactions, whether inbound to the United States or in other jurisdictions.
- Advising on existing law, whether state or federal.
- Leading compliance projects for complex investment, financing, and strategic transactions.
- Registering with state and federal agencies.
- Representing companies in front of regulatory bodies.
Special Considerations for Real Estate Transactions
Within the context of real estate beneficial ownership (REBO)—in addition to Committee on Foreign Investment in the United States and Corporate Transparency Act requirements—the US Department of Agriculture monitors and, in some cases, restricts foreign beneficial owners from purchasing and leasing certain real estate in the United States and from entering into concession agreements in specific cases. Further, US real estate transactions must comply with state-level beneficial ownership regulations in addition to any federal compliance obligations. Multiple states restrict or prohibit foreign ownership of real property or require reporting when foreign individuals or companies acquire, hold, or dispose of interests in real property. Given that state regulations differ in terms of reporting requirements, restrictions, and prohibitions, a real estate investor faces a patchwork of laws when transacting on properties in multiple jurisdictions.
Our REBO team advises clients on real estate portfolio management matters, including audits of existing assets for compliance with law. We also provide annual compliance monitoring for real property located in jurisdictions with annual filing obligations.
