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Federal Eyes on Real Estate: A 4-Part Insider’s Guide for Buyers and Sellers

Federal Eyes on Real Estate: A 4-Part Insider’s Guide for Buyers and Sellers

Federal Eyes on Real Estate:

A 4-Part Insider’s Guide for Buyers and Sellers

We are pulling back the curtain on how — and why — federal agencies like FinCEN, the FBI, Homeland Security, IRS-Criminal Investigations (IRS-CI), and CFIUS monitor real estate transactions in the U.S.

Whether you’re buying with cash, investing from abroad, transferring property to a family member, or just trying to close without a headache, you’ll want to know what can trigger federal scrutiny — and how to stay off the radar.

From flagged wire transfers and shell companies to gift-of-equity sales and land near military zones, this isn’t your average title-and-keys situation.

It’s real estate with a side of national security, tax enforcement, and financial crime prevention.

4-Part Series

PART 1

Is Big Brother Watching Your Home Sale?

fbi office

What Buyers and Sellers Should Know About Federal Oversight

You’re Not Paranoid — They Might Actually Be Watching
What you didn’t know on how federal agencies keep tabs on select real estate transactions.

PART 2

Your Closing Packet Could Be a Federal File

homeland security paperwork

How Your Paper Trail Might Raise Red Flags — And What You Can Do About It

What the FBI, IRS, and Homeland Security
Could See in Your Closing Docs
We’re unpacking what agencies might spot inside your deal’s fine print.

PART 3

Caught in the Crosshairs? What Triggers Federal Interest in Your Home Sale

cross hairs

The Top Red Flags That Could Invite a Closer Look from Washington

Cash, LLCs, or Land Near a Base? You Might Just Be a Target
The warning signs that put your deal on the government’s radar — and how to stay clear.

PART 4

Follow the Money: How the IRS Tracks Financial Crimes Through Real Estate

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From Unreported Income to Shell Game Schemes
— What IRS-CI Is Looking For

Your Closing Could Be an Audit Trigger — Here’s How the IRS Sees It
Explore the patterns, documents, and loopholes that turn ordinary deals into criminal cases.

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“As a realtor, the Rocheford team went above and beyond to make sure my client was not only protected from a legal standpoint but also operated in a timely manner to execute the sale of my client’s dream home.

Thank you for the great experience for myself and my client! Looking forward to our next deal together!”

Viktor Ryan

Realtor®

“I don’t usually use attorneys that often. But if an attorney is needed, I couldn’t recommend this law office enough. I always pride myself on responding quickly to emails and calls, but I was in awe of how fast paralegal Robert Heckman would respond to us. We sold our house a couple months ago and then did a two-part land swap with neighbors and my folks, and both transactions were seamless, including coming in to sign paperwork.

In short, if you need a law office that is responsive and attentive to detail, definitely consider them!”

John P.

Leominster, MA

“Excellent, conscientious and professional.

The communication throughout our Real Estate transaction was better than expected. We thought the fee to be very reasonable considering the work accomplished on our behalf. The law office handled the entire closing without us having to be in attendance….as we requested. I have had experience with very competent lawyers and law firms as the result of my previous profession. I would place this law office right up there among the best in their real estate field of expertise and surprisingly at very reasonable and affordable rates/fees.”

Tom M.

Buzzards Bay, MA

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Caught in the Crosshairs? What Triggers Federal Interest in Your Home Sale

Caught in the Crosshairs? What Triggers Federal Interest in Your Home Sale

Caught in the Crosshairs?

What Triggers Federal Interest in Your Home Sale

The Top Red Flags That Could Invite a Closer Look from Washington

Cash, LLCs, or Land Near a Base? You Might Just Be a Target

In today’s security-conscious environment, real estate deals aren’t just between buyers and sellers — they’re being watched, analyzed, and sometimes flagged by federal agencies. And while the average home transaction flies under the radar, certain combinations of factors can put your deal squarely in the government’s crosshairs.

This post outlines the most common red flags that trigger federal interest — not because you’ve done something wrong, but because your transaction fits a high-risk profile.

All-Cash Purchases Over Federal Thresholds

All-cash deals aren’t inherently suspicious — but they circumvent the checks that come with traditional financing. That’s why they’re monitored more closely, especially in certain cities.

Triggers Scrutiny When:

  • Purchase occurs in a FinCEN Geographic Targeting Order (GTO) region (like Boston, Miami, NYC, etc.)
  • Buyer uses an entity (LLC, trust, partnership) rather than a personal name
  • No mortgage or lender involvement, making the source of funds opaque

Check if your city is on FinCEN’s GTO watchlist

Foreign Buyers Purchasing Near Sensitive Locations

If you’re selling land or property near a military base, seaport, or energy facility, and your buyer is a foreign national or foreign-controlled company, your deal may come under review.

Triggers Scrutiny When:

  • Buyer is from a geopolitically sensitive country (e.g., China, Russia, Iran)
  • Property is within 100 miles of a designated sensitive site
  • Transaction lacks full ownership transparency

Learn how CFIUS flags foreign real estate transactions

Use of Shell Companies or Anonymous Trusts

The U.S. government is increasingly focused on beneficial ownership transparency — knowing who is actually behind the deal.

Triggers Scrutiny When:

  • The entity used is registered in a secrecy jurisdiction (Delaware, Cayman Islands, etc.)
  • There is no clear beneficial owner disclosed at closing
  • Documents reference multiple layers of ownership

See how the Corporate Transparency Act impacts real estate deals

Unusual Transaction Patterns or Repeated Flipping

Agencies like the IRS and FBI monitor the real estate market for signs of fraudulent investment behavior or tax evasion schemes.

Triggers Scrutiny When:

  • Property is bought and resold quickly at an inflated price
  • There’s a series of transactions between related parties
  • Funds move between multiple accounts or buyers during closing

FBI tips on recognizing property flipping fraud

Wire Transfers from High-Risk Countries or Banks

Closings often involve multiple wire transfers — but not all financial institutions are treated equally. Some are flagged for lax compliance standards or sanctions risks.

Triggers Scrutiny When:

  • Funds are transferred from offshore accounts with unclear sourcing
  • Transfers pass through non-U.S. banks flagged by the Treasury Department
  • The transfer amount and origin don’t match the buyer’s stated income or citizenship

Check OFAC’s sanctions lists (used by Homeland Security and Treasury)

How to Avoid Red Flags — Without Wrecking Your Deal

You don’t need to avoid cash, trusts, or foreign buyers altogether — but you do need to approach them with transparency and legal oversight.

Here’s how to protect your closing:

  • Use a qualified closing attorney who knows what will raise compliance concerns
  • Disclose beneficial ownership if you’re buying through a business or trust
  • Avoid unusual structuring (like passing ownership through a friend or nominee)
  • Keep clean documentation for funds, identity, and intent

Smart Deals Don’t Get Flagged — They Get Cleared

At The Law Office of David R. Rocheford, Jr., P.C., we know how to structure your closing so that it passes every test — legal, financial, and federal. Whether you’re selling to a foreign buyer or buying with cash, we keep your transaction clean and compliant.

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Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
SANDRA MALDONADO

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How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values.
Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market. Here’s how:
female homeowner sitting on curb with a background of a home site after a natural disaster

Homebuyer Behavior

Many buyers now consider flood-risk data before making offers. Research shows that buyers viewing high-risk homes are increasingly shifting their focus to safer properties, with some even abandoning purchases due to flood-risk concerns.

picture of a new england home

Insurance and Costs

Rising disaster frequency has led to increased home insurance premiums, particularly for flood and wildfire protection. This added expense can influence home affordability and appeal.

man and woman homeowners standing with back toward camera, looking on a home site after a natural disaster

Adaptation Investments

Homeowners are investing in climate-resilient upgrades, such as fireproofing, flood barriers, and durable roofing, to protect property value and safety.

picture of a new england home

Regional Variations

Coastal and disaster-prone areas like Florida and California are seeing the most significant impact. Meanwhile, regions with fewer natural disasters, like the Midwest, remain less affected.

Governments and policymakers are encouraged to use climate data for better zoning and disaster mitigation strategies. These measures could help safeguard at-risk communities while maintaining the stability of the housing market.

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
SANDRA MALDONADO

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Should You Hire Your Lender’s Closing Attorney in MA & NH?

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When you’re buying a home, there’s no shortage of decisions to make—fixed or adjustable rate? Move-in ready or fixer-upper? But here’s one question you might not have considered: Should you use the attorney your lender recommends for your closing? In Massachusetts and...

5 Hidden Title Defects That Can Delay Your MA or NH Home Closing

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You’ve found your dream home in Massachusetts or New Hampshire. The offer is in, the inspection went smoothly, and closing day is in sight. But then—bam!—a title defect surfaces, and suddenly your seamless transaction feels more like a nightmare. At The Law Office of...

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Ah, the "Big Beautiful Bill"—sounds like something out of a fairy tale, doesn't it? But this recent tax mega-bill, passed just last week, is very real and packs a punch for home buyers in high-tax havens like Massachusetts and New Hampshire. Let's break it down, shall...

Home Affordability Reaches An All-Time High

Home Opportunity Index (2005-2012)Home affordability moved higher last quarter, boosted by the lowest mortgage rates in history, a rise in median income, and slow-to-recover home prices throughout Massachusetts and the country.

According to the National Association of Home Builders, the quarterly Home Opportunity Index read 75.9 in 2011’s fourth quarter. More than 3 in 4 homes sold between October-December 2011, in other words, were affordable to households earning the national median income of $64,200.

Never in recorded history have U.S. homes been as affordable on a national level. Even on a regional and local level, affordability soared.

Affordability was highest in the (more…)