Foreign Sellers’ Withholding Up 50%

There’s such a thing as FIRPTA. ┬áIt’s the Foreign Investment In Real Property Tax Act of 1980, and it attempts to be certain that foreign owners do not escape a capital gains tax when they sell their US properties.

I’ve also heard it described as the Foreign Rip-off Provision to Tax Aliens.

Either way, it requires the Buyer(!) to be sure a foreign seller pays their capital gains taxes. And there’s a withholding provision at closing that used to take 10 percent. As of February 17, it will go up to 15%. That’s a 50% increase.

Here’s the story: CLICK HERE

If You’re Selling, Here’s What NOT to Say

I don’t like to have sellers in the property when I’m showing my listings. they could say something that’s not beneficial to the transaction I hope to get started.

And buyers usually don’t want someone hanging around and overhearing their comments, either.

What’s worse, sometimes, a seller will say something that can cost them in the long run. Cost a sale, or cost an offer, or even cost money before we get to closing.

For example, if they say something about the condition of their property, and the buyer hears that the roof is near the end of its useful life, they could come back after an inspection period and ask that the selling price be reduced by the amount of a new roof. Even if their inspection doesn’t say the roof is bad.

Then what? you have a buyer on the line. Do you just say, “No?” and move on to the next prospective buyer? Or negotiate something less than a full roof replacement cost? It never would have come up except for an inadvertent comment.

So, sellers, if you happen to be near a buyer, even a neighbor, here’s a recent article from Florida Realtors with hints of what NOT to say.