FIRPTA for Realtors
FIRPTA for Realtors
Whether you have had clients subject to FIRPTA withholding requirements before or this is your first time encountering a foreign seller, it is always a little bit of an unnerving situation. Let us help guide you so that you can feel confident in the message you are sharing with your clients.
How do I know if the Seller is foreign?
What are my responsibilities?
Should I just avoid Foreign Sellers?
I like to be proactive – what can I do to help?
If the sale price is less than a million, then you can include in the listing that any Buyer is willing and able to sign an affidavit saying that they plan to use the property personally. Click here to learn more about the Personal Use Affidavit. If the Buyer signs the Affidavit, then the FIRPTA withholding rate can be reduced from 15% to 10% for properties with a sales price of between $300,000 and a million. If the sales price is less than $300,000 and the Buyer signs the Affidavit, then the FIRPTA withholding rate can be reduced from 15% to 0%!! While you might be limiting the number of Buyers interested, the benefits could be significant for your foreign Sellers.
Is FIRPTA forever?
Any final words of advice?
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