Speak to a real estate attorney at the beginning of your home hunt. An attorney is as beneficial as a Realtor in the process of buying or selling property. It is important to know that real estate agents and attorneys are equal partners in a search for property. The relationship is symbiotic and will ultimately save you money, heartache and headache by uncovering unexpected issues as early as possible.
FIRPTA (Foreign Investment in Real Property Tax Act) Withholding is the Withholding of Tax on Dispositions of United States Real Property Interests. FIRPTA applies to foreign people who intend to sell a real property located in the U.S. Here’s everything you need to know about FIRPTA, as a realtor, seller, or buyer.
When you buy property, you are not only buying the physical property, but also the abstract right to possess, or own, that physical property. "Title" is the legal term for owning property. When property is bought and sold, the title (right to own the property) is transferred from one owner to another. Because the legal concept of title is abstract, problems can and likely will arise. Title insurance is an insurance policy that protects the buyer in case of inaccuracies or issues undiscovered when the title of property is transferred to the new owner.
FIRPTA stands for Foreign Investment in Real Property Tax Act and it is the Federal law governing the taxation & withholding by foreign persons selling US real estate.