Escrow & Title
A 'FIRPTA withholding' at a Georgia closing is required when:
AA. The property is located in a flood zone
BB. The seller is a foreign person or entity — the buyer must withhold a portion of the sale price for remittance to the IRS✓ Correct
CC. The buyer is obtaining an FHA loan
DD. The property is being sold through a short sale
Explanation
FIRPTA requires buyers to withhold (typically 15%) of the gross sale price when purchasing U.S.
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Key Terms to Know
Short Sale
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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