Can You BUY A HOUSE Using BITCOIN [Or Any CRYPTOCURRENCY] In 2021?

TL;DR

In North Carolina, it is currently not possible to purchase a house using Bitcoin or any other cryptocurrency due to legal regulations and the inability to trace the source of funds.

Transcript

Can you buy a house with Bitcoin? I get this question way more than I expect to. So let's talk about it today. I'm Tiffany Webber. I'm a real estate lawyer and the lake Norman area of North Carolina. And I have done thousands of real estate closings at this point. And for. Whatever reason right now, this is a hot topic. A lot. Of people are asking ... Read More

Key Insights

• 🏘️ The Good Funds Settlement Act in North Carolina prohibits the use of cryptocurrencies, including Bitcoin, for purchasing a house.
• 🪡 Lawyer's trust accounts cannot accept cryptocurrencies since they need to be liquidated before deposit.
• ℹ️ Lenders do not allow the use of cryptocurrency as a source of funds for real estate transactions due to the difficulty in tracing its source.
• ❓ Cryptocurrencies' privacy features do not align with current lending guidelines.
• 💰 People generally measure the value of real property in dollars, not cryptocurrencies.
• 👮 The current legal landscape in North Carolina does not support buying a house with Bitcoin, but laws may change in the future.
• 🏘️ Consultation with a lawyer licensed in the specific state is necessary to determine whether buying a house with cryptocurrency is possible.

Questions & Answers

Q: Why can't you buy a house with Bitcoin in North Carolina?

In North Carolina, the Good Funds Settlement Act mandates that all funds for a real estate transaction be verified and deposited in a lawyer's trust account. Since cryptocurrencies are not acceptable funds, Bitcoin cannot be used to purchase a house.

Q: Can a lawyer's trust account accept cryptocurrency?

No, lawyer's trust accounts cannot accept cryptocurrencies because they are regulated, and money cannot be accepted unless it is first liquidated.

Q: Why can't lenders allow the use of cryptocurrency for purchasing a house?

Lenders need to trace the source of funds for regulatory purposes. Since the source of funds in cryptocurrencies cannot be easily traced, lenders do not permit its use for closing.

Q: Will the laws regarding cryptocurrency for real estate transactions change in the future?

While it is uncertain when and if laws will change, it is unlikely that North Carolina will allow the use of cryptocurrency for purchasing a house due to current regulations and the inability to trace funds.

Summary & Key Takeaways

• Real estate lawyer, Tiffany Webber, explains that the use of Bitcoin or any other cryptocurrency is not allowed in North Carolina for purchasing a house.

• The Good Funds Settlement Act in North Carolina requires all funds needed for a real estate transaction to be verified and deposited in a lawyer's trust account before recording the deed and dispersing funds.

• Cryptocurrencies are not considered acceptable funds for deposit in a lawyer's trust account, and lenders cannot trace the source of funds if cryptocurrency is used.