1. Overview of the U.S. Real Estate Legal System
- 🇺🇸Federal + state legal system : U.S. real estate is governed by both federal and state laws;
- 🏘️The ownership of real estate is clear and the property rights system is sound : the United States implements a permanent property rights system for real estate;
- ⚖️The regulations of each state vary significantly : the procedures for buying a house, renting, taxation, and transfer of ownership are all different.
2. Six legal points that home buyers must understand
✅ 1. Home buying status and qualifications
- Foreigners can legally purchase homes without a green card;
- You can hold property rights without residency status, but you will not enjoy some tax benefits.
✅ 2. Ownership type and transfer process
- Generally, it is Fee Simple (permanent ownership);
- Buying a house requires completing a property rights investigation and transfer guarantee through a property rights company.
✅ 3. Deed tax, property tax and annual fees
- Property taxes are charged by state/county, and the annual fee is approximately 0.5%-2.5% of the property's market value;
- Some states, such as Texas and California, have relatively high tax rates.
✅ 4. Rental regulations and tenant rights
- Each state has strict regulations on rental relationships (for example, California is extremely protective of tenants);
- It is recommended to confirm the level of support for landlords in the target state before purchasing a home.
✅ 5. Local regulations and HOA regulations
- Short-term rentals, group rentals or sub-rental are prohibited in certain areas;
- HOA (Homeowners Association) can restrict housing use, decoration style, etc.
✅ 6. US tax compliance requirements
- Real estate-related taxes need to be paid: such as capital gains tax and inheritance tax;
- It is recommended to hire a Certified Public Accountant (CPA) to assist with planning.
3. Key legal nodes in the home purchase process
| Process Links | Legal Notices |
|---|---|
| Signing a purchase contract | Review whether the terms are clear and whether they violate |
| Check title records | Ensure no mortgage debt and clear title |
| Home Inspection and Settlement | Check the structural safety and complete the delivery according to the contract |
| Holding Period Management | Whether tax declaration, rental report and maintenance responsibility are required |
Conclusion
Investing in US real estate is not only an economic act, but also a legal act . Only by clearly understanding and complying with relevant laws and regulations can you move forward steadily in this mature but complex market. It is recommended that every investor consult a professional lawyer and tax advisor before making a move, so that the law can protect your assets.