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Foreign buyers and sellersForeign buyers and sellers of Illinois real estate

Wang Law Firm, LLC · David Wang, Managing Attorney · Attorney-reviewed · Updated October 2026

Start here: (1) As of October 2026, Illinois has no law in effect prohibiting foreign nationals or Chinese citizens from buying residential property; foreign persons who acquire agricultural land must report it to the state Department of Agriculture. (2) Buying a home in the United States does not by itself confer any immigration status. (3) You can complete a transaction while abroad, but confirm the signing method with your attorney and the title company in advance. (4) If the seller is a foreign person, the buyer usually must withhold tax from the purchase price by law (FIRPTA), and both buyer and seller should plan for this early.

Many clients living in China or another country want to buy a condo in Chicago for a child, or to sell a home they bought years ago. This is entirely possible legally, and the process is broadly the same as a local U.S. transaction: contract, attorney review, inspection, title review and closing. The main differences are four: signing abroad, moving funds across borders, tax withholding when the seller is a foreign person, and tax reporting later while you own and rent the property. This article addresses each in turn. For the general buying and selling process, see Buying a home in Chicago and Selling a home in Chicago.

Can foreign nationals buy property in Illinois?

Yes. Section 7 of the Illinois Property Owned By Noncitizens Act (765 ILCS 60) provides that noncitizens may acquire, hold and dispose of real property in the same manner and to the same extent as U.S. citizens.

In recent years a number of states have passed laws restricting purchases by foreign nationals (particularly Chinese citizens or China-linked entities) of agricultural land or land near sensitive facilities. Similar bills were introduced in the Illinois General Assembly in the 2025–2026 session, but according to the General Assembly’s public bill records, they all remained in committee after introduction and did not pass. So as of October 2026, Illinois has no such restriction in effect. Legislation may still change, and we verify again before you sign a contract.

Current rules to be aware of:

Agricultural land reporting: under the Illinois Agricultural Foreign Investment Disclosure Act (765 ILCS 50/3), a foreign person who acquires or transfers an interest in Illinois agricultural land must report it to the state Director of Agriculture within 90 days; at the federal level, the Department of Agriculture has a separate foreign investment reporting system. Buying an urban residence generally does not involve this.
Federal review: purchases by foreign persons of real estate near sensitive sites such as military installations may fall within the review of the Committee on Foreign Investment in the United States (CFIUS); however, the federal rules expressly exclude a single housing unit (31 CFR 802.216). An ordinary family buying a home to live in or a single condo to rent out is generally not affected.

Buying a home and immigration status are separate matters

Buying a home in the United States, however large the price, will not get you a green card or visa or extend your authorized stay, and it does not change the conditions of your current visa. Owning property also does not make you a U.S. tax resident; tax residency turns mainly on tests such as the number of days you are present in the United States (see Immigration status and U.S. tax residency).

The EB-5 investor program requires funds to be invested in a commercial enterprise that creates jobs; a home to live in or a rental residence does not qualify (see EB-5 investor immigration). Buyers in the United States on a visa or green card can buy a home; loan terms are set by the lender.

How to sign when you are abroad

When the buyer or seller is outside the United States, there are three common approaches. Which one to use depends on the type of document, the requirements of the lender and title company, and the options available where you are. We confirm this with the title company at the contract stage; do not wait until the week before closing.

Method	How it works	Notes
Notarization at a U.S. embassy or consulate abroad	Book notarial services at the U.S. embassy or consulate where you are, bring your passport, and sign in person	An appointment is required in advance, and the services and arrangements are as currently published by the embassy or consulate; documents must be in English, and you must sign in front of the consular officer, so do not sign beforehand
Local notarization + apostille	In China, have the document notarized by a notary office, then obtain an apostille from China’s Ministry of Foreign Affairs (or an authorized local foreign affairs office)	China has applied the Hague Apostille Convention since November 7, 2023, so documents sent for use in the United States no longer need consular legalization; if the title company has format requirements, send the document to them for review in advance
Illinois electronic notarization	Performed by a notary commissioned as an Illinois electronic notary, by live audio-video on a platform approved by the Secretary of State	See below

Remote notarization and electronic notarization in Illinois

The Illinois Notary Public Act (5 ILCS 312), as amended by P.A. 102-160, together with the Secretary of State’s implementing rules effective June 5, 2023, distinguishes two approaches:

Remote notarization: paper documents and handwritten signatures, done by video. The signer must attest to being physically in Illinois during the video session (5 ILCS 312/6-102.5), so this method cannot be used by someone abroad.
Electronic notarization: electronic documents and electronic signatures. The notary must hold a separate electronic notary commission, must be physically in Illinois when performing the notarization, and must use a platform approved by the Secretary of State. Under 5 ILCS 312/3-105(c), the signer may be outside the United States when the matter involves property located in the United States or a transaction substantially connected to the United States.

In other words, state law allows electronic notarization for signers located abroad, but whether it can actually be used also depends on whether the lender, the title company and the county recorder accept electronic documents, and whether the country where the signer is located permits it. Our firm does not give opinions on whether Chinese law permits this. For deeds that must be recorded, we usually still recommend one of the first two methods.

Power of attorney

If it is not convenient to sign all the documents yourself, you can appoint a relative, friend or attorney in the United States to sign for you. Title companies generally require the power of attorney to state the specific property address and transaction and review the text before closing; the power of attorney itself often must be notarized as well, and sometimes the original must be provided or recorded with the deed. A power of attorney signed in China should be notarized in China and apostilled as described in the table above. For a general introduction to notarization and apostilles, see Notary & apostille and Apostilles.

FIRPTA: withholding when the seller is a foreign person

Under the Foreign Investment in Real Property Tax Act (FIRPTA, Internal Revenue Code section 1445), when a foreign person sells U.S. real property, the buyer is the withholding agent and usually must withhold 15% of the amount realized and pay it to the Internal Revenue Service (IRS). If the buyer fails to withhold as required, the IRS may hold the buyer liable for the tax. So if the seller is a foreign person, this issue matters just as much to the buyer.

Who is a “foreign person”: this depends on status under tax law, not nationality. Green card holders and people who meet the tax residency tests are usually not foreign persons for FIRPTA purposes. A seller who is not a foreign person usually signs a certification of non-foreign status at closing.
Residence exception: no withholding is required if the buyer is an individual, the amount realized does not exceed $300,000, and the buyer or a family member has definite plans to reside at the property for at least 50% of the number of days it is used during each of the first two 12-month periods after closing.
Reduced withholding rate: if the buyer plans to live in the home and the amount realized is more than $300,000 but not more than $1 million, the withholding rate is 10%.
Applying for reduced withholding: if the seller’s actual tax liability is far below the amount to be withheld, the buyer or seller can use Form 8288-B to apply to the IRS for a withholding certificate that reduces or eliminates withholding. This takes time, so file as early as possible before closing.
Reporting forms: the withheld amount is reported and paid using Forms 8288 and 8288-A. When the seller later files a tax return, the seller can credit the tax already withheld, receiving a refund of any excess or paying any balance due; this usually requires the seller to have a U.S. taxpayer identification number (such as an ITIN).

In practice, the withheld amount is generally held back by the title company from the seller’s proceeds at closing. The attorney will set out the withholding arrangement clearly in the contract and coordinate among the buyer, the seller, the title company and the accountants. The specific tax amount and filings are tax matters; please work with an accountant (see the tax section).

While you own the property: renting and tax reporting

Rental income: federal tax law has special rules for U.S. rental income of nonresidents for tax purposes: tax may be withheld on gross rents, or you can elect to report on a net basis (taxed after deducting expenses and depreciation). Which method to choose, and whether you need to file Illinois income tax, should be confirmed with an accountant.
Gain on sale: a sale raises capital gains issues. The home sale exclusion (IRC 121) has conditions such as the length of residence, which foreign nationals often may not meet.
Estate arrangements: U.S. property held by a non-U.S. resident may later be subject to U.S. estate tax, with an exemption far lower than for U.S. citizens and residents. It is best to plan how you will hold title when you buy (see Cross-border estate planning).
Property taxes: Cook County property taxes are payable every year as usual, regardless of the owner’s nationality. The Homeowner Exemption and similar exemptions require the home to be your principal residence and generally do not apply to a home you do not live in.

Cross-border funds and wire safety

Sending funds out of China must comply with China’s foreign exchange regulations; our firm does not give opinions on Chinese law. On the U.S. side:

Schedule your transfer early; large international wires can take several business days, so do not leave it to a day or two before closing
Keep complete transfer records and source-of-funds documents; the receiving bank, lender or title company may ask about the source of funds
Before wiring, call the title company at a phone number you already know (not one provided in an email) to verify the receiving account
Always verify any “account change” email first; attorneys and title companies generally do not change accounts at the last minute
If money has already been sent to the wrong account, immediately contact your bank to request a recall and file a report on the FBI’s IC3 website

Whose name to hold title in: individual, trust or LLC

Foreign buyers often ask whether they should form an LLC to buy property. An LLC can separate the operating risk of a rental property and make joint investment by several people easier, but it adds formation and annual report costs, loan terms may differ, and the tax treatment (especially for foreign members) is more complex; a home you live in that is held by an LLC usually also cannot receive the homeowner exemption. A revocable living trust is used mainly to avoid probate, but its effect on estate tax for non-U.S. residents is limited. Which approach is appropriate must be judged together with your intended use, family members’ status and tax considerations. For a comparison of the forms of ownership, see Closing and title, and also Illinois LLCs and Living trusts.

In addition, the Financial Crimes Enforcement Network (FinCEN) issued a rule requiring reports of non-financed residential transfers to entities or trusts. On March 19, 2026, the U.S. District Court for the Eastern District of Texas vacated that rule (Flowers Title Companies v. Bessent), and the government has appealed. As of October 2026, FinCEN states that reporting is not currently required, meaning the rule is not in effect. We will update this page once the appeal is decided.

What the attorney does at this stage

Review and revise the contract during attorney review, setting out clearly the terms on FIRPTA withholding, remote signing, flexibility on the closing date and so on;
Confirm with the title company as soon as possible after signing: which documents can be signed abroad, which notarization method to use, and whether the power of attorney text is acceptable;
Prepare or review the power of attorney, deed and closing documents, and explain each one to you in English, Chinese or French;
When the seller is a foreign person, coordinate with the accountant on the 8288-B application or withholding arrangements;
Represent you at closing and check the settlement statement and payment instructions.

Common situations for Chinese-speaking clients

Parents in China funding a condo for a child studying in the U.S.: first think through whose name the property will be in. If it is in the child’s name, the child must be at least 18 to sign the contract personally; if the child is a U.S. tax resident, receiving a large gift from relatives abroad may trigger U.S. reporting obligations (such as Form 3520), so consult an accountant.
Selling a home bought years ago while now living in China: common questions are whether the seller is a foreign person for FIRPTA purposes, whether the seller has an ITIN, and how to sign the power of attorney. We recommend a consultation before listing.
Condo buildings: some buildings restrict rentals, so a foreign buyer who plans to rent the unit out should review the building’s governing documents and 22.1 disclosure documents before signing.
Signing based only on a Chinese translation: the English version of the contract and closing documents controls; before you sign, have an attorney explain each provision to you clearly in Chinese.

Common misconceptions

“If I buy a home, I can get status or stay longer.” No.
“FIRPTA is the seller’s problem and has nothing to do with the buyer.” The buyer is the withholding agent and may have to bear the tax if it fails to withhold.
“If I’m abroad, any notarization will do.” The notarization method must be accepted by the title company in advance, or it may delay the closing.
“Chinese citizens face restrictions on buying homes in every U.S. state.” Restrictions vary by state and mostly target agricultural land or land near sensitive facilities; as of October 2026, Illinois has no such restriction in effect.

How we can help

Represent foreign buyers and sellers in Illinois residential and commercial real estate transactions, communicating in English, Chinese or French throughout;
Plan the remote signing approach and prepare the power of attorney and closing documents;
Coordinate FIRPTA withholding, the title company and your accountant;
Advise on holding title through an LLC or trust, working with tax professionals.

Frequently asked questions

Can I buy a home in Chicago without U.S. status or a Social Security number?

Yes. Illinois law allows noncitizens to hold real property. The process for an all-cash purchase is basically the same as for local buyers; if you need a loan, whether you can get one and on what terms is up to the lender.

Do I have to come to the United States in person for closing?

Not necessarily. You can sign abroad through notarization at an embassy or consulate, Chinese notarization plus an apostille, or similar methods, or appoint an agent to sign under a power of attorney. Confirm the specific method with the title company in advance.

Can I use Illinois remote video notarization while I am in China?

Remote notarization of paper documents requires the signer to be physically in Illinois, so it cannot be used from China. Under state law, electronic notarization can be performed for signers abroad on documents involving U.S. property, but whether it can actually be used depends on whether the title company, lender and recorder accept it; our firm does not give opinions on Chinese law.

I am a foreign seller. Will 15% be taken out of my sale proceeds?

Generally, the buyer must withhold 15% of the amount realized. If an exception such as the residence exception applies, less or nothing may be withheld; you can also apply for a withholding certificate to reduce withholding. The amount withheld is credited against your tax when you file your return, with any excess refunded or any balance due paid.

I have a green card and live in the U.S. Will FIRPTA withholding apply when I sell?

Green card holders are usually not foreign persons for FIRPTA purposes and simply sign a certification of non-foreign status at closing. However, the status of green card holders who live abroad for long periods is more complicated; please confirm with an accountant.

Should I use an LLC to buy?

Not necessarily. An LLC can suit some rental or multi-investor situations, but the costs and tax treatment are more complex, and for a home you live in it is generally unnecessary. We recommend deciding with your attorney and accountant before you buy.