Bitcoin and other forms of cryptocurrency have started changing the way some do business throughout Florida and the rest of the United States. Florida has created laws that clearly define what virtual currency is and has outlined the exact penalties for using cryptocurrency for money laundering. While these laws have started to create rules for the largely unregulated currency, as time goes on, realtors can expect to see an increase in real estate transactions that use cryptocurrency. In January of 2018, a man purchased a $415,000 house using a combination of cryptocurrency to pay his down payment and other fees. Being aware of how bitcoin may impact future home closings will help you prepare for transactions made by property buyers who use cryptocurrency for large transactions.
Since the average company is not equipped to accept bitcoin in its original form, a person purchasing a home using cryptocurrency must convert that cryptocurrency to cash. Even though the value of bitcoin fluctuates, real estate agents who have dealt with similar transactions had clients who liquidated two bitcoins for approximately $7,000 each. The time it takes to convert cryptocurrency to USD may extend the time it takes to close on your home. In some cases, a buyer failing to sell the bitcoin may lead to the entire transaction falling through.
Know the Worth
Miami, Florida has gained a reputation for being bitcoin friendly. Organizations have formed throughout the city that focus on combining resources to buy bitcoin or other forms of cryptocurrency. Bitcoin ATMs are now located throughout Florida and multiple properties in the area (including a $6.4 million mansion) are listed with bitcoin prices boasting the ability to close without converting bitcoin to cash.
When these transactions occur, both you and your client must be aware of current bitcoin values to ensure that you are paying an accurate asking price. Bitcoin worth has risen rapidly in just a few months. In December of 2017 one bitcoin was valued at approximately $7,400 USD and today (March 2018) the estimated value is $11,000 USD. Knowing the worth of bitcoin is crucial when navigating a bitcoin transaction. A misstep could lead to your client receiving less than his or her home is worth or a buyer paying more than the asking price.
Discuss Your Concerns with an Attorney
The world of cryptocurrency is rapidly evolving, and while no one is sure about the future of bitcoin, it is sure to impact Florida’s real estate industry. Until bitcoin is regulated, it is up to you to navigate the volatile and often certain world of cryptocurrency with your clients. Discussing your concerns and future needs with a real estate attorney is a vital first step for those who anticipate dealing with bitcoin transactions in the future. The team at Adam Law Group is here to help you determine what solutions are best for your clients and business. We work with you to find safe ways to complete closings that involve the use of cryptocurrency. Contact us today to schedule a consultation so that we can begin providing you with the legal advice you deserve.