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New FIRPTA requirements are now law...
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New FIRPTA requirements are now law...
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Posted by Charles_Ca on 8/1/08 4:51pm
Msg #258210

New FIRPTA requirements are now law...

- SELLER NEED NOT REVEAL SSN TO BUYER UNDER FIRPTA: Effective immediately, sellers are no longer required to provide to their buyers the Seller's Affidavit of Nonforeign Status (C.A.R. Form AS), which includes the sellers' social security numbers, under the Foreign Investment in Real Property Tax Act (FIRPTA). Instead, as another option, no federal withholding is required if the seller furnishes the Seller's Affidavit with his or her social security number to escrow or other qualified substitute as defined, who in turn, furnishes a statement to the buyer stating, under penalty of perjury, that it has the Seller's Affidavit in its possession. A "qualified substitute" is a person responsible for closing the transaction, such as an escrow company, title company or the buyer's agent, but not the seller's agent. The federal withholding law is now similar to California's Franchise Tax Board (FTB) policy which allows the escrow officer to remove the seller's tax ID number from the buyer's copy of the California withholding tax statement, but not other copies.


Reply by SheilaSJCA on 8/1/08 6:04pm
Msg #258226

Its about time! glad to hear that

Reply by GWest on 8/1/08 8:08pm
Msg #258237

Glad to see that. When I sold my home in SoCal about 3 years ago, we refused to put our SS#'s on the FIRPTA and put "Confidential / Provided to Escrow". We also handled it the same on the any of the files I coordinated for my agents and never had anyone question it.

Reply by Stamper_WI on 8/1/08 8:16pm
Msg #258239

It's been that way in WI for many years. No ss's anywhere on the paperwork. The TC's and lenders have them though.

Reply by JanetK_CA on 8/2/08 1:08am
Msg #258246

Interesting...

I've done 3 sellers' packages this week, all with different versions of that document, but also all asking for ss #'s on a page requesting both buyers' and sellers' signatures. I certainly wasn't going to say anything, but it did seem a little wierd to me. I'm also glad to see this changing.


 
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