Foreign investment in New York City’s real estate market continues to grow, and understanding the legal and financial aspects is critical for non-resident buyers. Natalia A. Sishodia (https://sishodia.com/step-by-step-guide-for-foreigners-buying-real-estate-in-new-york-city/), a New York foreign investment lawyer at Sishodia PLLC, provides insight in a detailed guide titled “Step by Step Guide For Foreigners Buying Real Estate in New York City.” Her guidance is designed to help foreign nationals make confident, well-informed decisions when purchasing property in one of the world’s most sought-after real estate markets.

New York foreign investment lawyer Natalia A. Sishodia emphasizes that there are no federal restrictions preventing foreign nationals or corporations from owning real estate in the United States. Despite this, complications may arise when dealing with specific property types such as co-ops, which often require U.S. tax returns. These hurdles, however, do not apply to other popular options like condominiums and townhouses, which are more accessible to foreign buyers. Sishodia PLLC works closely with foreign clients to guide them through these options and help structure their investments properly.

The role of a New York foreign investment lawyer is critical in helping buyers navigate the purchasing process. As Natalia A. Sishodia explains in the article, “A New York foreign investment lawyer can help you if you are a foreigner and your goal is to purchase real estate properties in New York City.” The process includes understanding property types, preparing documentation, obtaining financing, negotiating contracts, and ensuring compliance with tax laws and ownership regulations. Each step requires careful consideration, particularly for buyers unfamiliar with U.S. legal and financial systems.

Many foreign buyers are drawn to new development condominiums, which often bypass the need for board approval or formal purchase applications. These properties, with their modern features and streamlined processes, present fewer regulatory barriers and are ideal for international investors seeking a more straightforward transaction. Natalia A. Sishodia highlights that foreign nationals purchasing real estate in their own name, as opposed to through a corporation or trust, may face significant estate tax exposure. She encourages buyers to work with both legal and tax professionals to determine the most beneficial ownership structure for their situation.

In the guide, Natalia A. Sishodia outlines a practical, ten-step process for purchasing property in New York City, from preparation and offer-making to closing. She explains that a foreign investor should begin with financial planning, including consultations with mortgage brokers and tax advisors. Getting pre-approval from a bank increases the likelihood of a smooth purchase process, especially when dealing with co-op boards or competitive bidding environments.

Once a property has been selected, a lawyer plays a vital role in reviewing contracts and ensuring that the buyer’s rights are protected. The buyer will typically deposit 10% of the purchase price into escrow after signing the contract, a common practice in New York real estate transactions. Conditions like mortgage contingencies, while protective, may not always be accepted by sellers, making legal oversight essential.

Financing can be more challenging for foreign nationals, as banks typically require a larger down payment—up to 40%—and proof of substantial liquid assets in a U.S. bank. However, some banks are willing to offer asset-based loans, particularly to clients who move their funds to domestic institutions. Cash buyers benefit by avoiding the New York mortgage recording tax and associated financing fees.

A major consideration for foreign investors is asset protection and tax exposure. Without proper planning, non-U.S. residents may be subject to estate taxes of up to 56% upon death. A New York foreign investment lawyer like Natalia A. Sishodia can help clients structure ownership in a way that minimizes liabilities while ensuring legal compliance.

Another area of concern is approval from co-op or condo boards. While condos tend to be more lenient, co-ops have stringent rules, including interviews and detailed financial disclosures. Foreign buyers often prefer new development condos precisely because they avoid these complications.

When preparing for closing, buyers will need to complete appraisals, title searches, and compliance checks. Closings typically involve the presence of legal representatives from both parties, along with title companies and sometimes banks. In many foreign investment cases, closings are completed remotely using powers of attorney, allowing investors to purchase property without being physically present in New York.

Expenses related to ownership, including property taxes and maintenance fees, vary based on property type and location. Co-op owners may deduct a portion of their maintenance costs, while all owners may deduct real estate taxes. These deductions, coupled with sound tax planning, can make New York real estate a viable long-term investment for international buyers.

Foreigners are also permitted to lease out their properties. Natalia A. Sishodia notes that condominiums are generally more flexible for rental purposes than co-ops, which may impose severe restrictions. She advises that foreign investors review building bylaws carefully before making a purchase intended for rental income.

Natalia A. Sishodia’s practical insights reflect the firm’s commitment to helping foreign investors navigate the legal landscape of New York real estate. Her work at Sishodia PLLC supports clients through all stages of a transaction, from planning and purchase to asset protection and compliance.

Buyers interested in New York real estate can benefit significantly from working with a New York foreign investment lawyer to understand their options and responsibilities. The process involves more than finding a property—it requires careful planning, thorough documentation, and experienced legal support every step of the way.

About Sishodia PLLC:

Sishodia PLLC is a New York City law firm led by attorney Natalia A. Sishodia. The firm represents international and domestic clients in real estate transactions, with a focus on foreign investment. Sishodia PLLC provides legal guidance throughout the buying and selling process, helping clients navigate contracts, ownership structures, tax compliance, and closings in New York City’s property market.

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