347-787-6824The LAW FIRM OF DAYREL SEWELL, PLLC is pleased to announce its latest publication, “Shrouded in Secrecy: LLCs and High-End Real Estate”, appearing on the front page of the September 2016 issue of the Brooklyn Barrister. The Brooklyn Barrister is the official publication of the Brooklyn Bar Association.
LLCs are limited liability companies that shield the owners by creating a personage that acts on behalf of the owners. This shield protects the owners from personal liability, so long as they do not create a nuisance, such as incurring large amounts of debt or causing felonies to be committed. By using LLCs as a conduit, individuals—both civilians and criminals alike—are able to purchase high-value properties while protecting their identities and similarly the funds used in the purchases.
The use of LLCs in high-end real estate transactions has increased dramatically in the last 15 years. According to an analysis for the Wall Street Journal performed by Zillow, in 2012 27% of U.S. homes sold in 2012 were bought by LLCs, as opposed to 5 years prior, when this percentage was only 17%. See Alyssa Abkowitz, Psst. Wanna Buy a House? WALL STREET JOURNAL, (Oct. 25, 2012). This growth has continued, and is particularly relevant in larger markets, such as New York.
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