Hello ALTA;
I hope you had a beautiful long weekend, I am working on a very simple and easy to understand "FIRPTA Quick Checklist" for all of you guys, but let me tell you, TIMING is one of the most important things when it comes to FIRPTA.
We received a call this past Friday afternoon, prior to the long weekend where the seller is foreign, he is in Europe and the buyer had already closed, escrow retained 15% of the sales price, HOWEVER and I cannot stress this enough to you guys TIMING is VERY IMPORTANT, on top of that there are certain documents that HAVE TO BE SENT THE DAY OF THE CLOSING otherwise the chances of problems arising increase due to something that was very easily preventable.
I do not know about title to even suggest what should comes first, but making sure the seller is NOT foreign is important in order to avoid unnecessary stress for you and everyone involved in the transaction, remember, parties have to be informed, documents and information have to be compiled, agreements have to be signed, professional fees have to be agreed upon and invoices have to be sent to either title company OR seller, also, closing documents and all the FIRPTA paper work that has to be done takes a little bit of time, so is important to have at least 5 business days prior to the closing so everything goes smoothly. Many times is hard for buyer and/or seller to comprehend the process taking place and we want to make sure they all understand.
We are here to assist, educated, answer questions and most importantly be a resource and make FIRPTA easy for you.
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Mary Enzi
Tax Solutions – FIRPTA Consulting
Barker TX
+1 (281) 578-1040
[email protected]------------------------------