Escrow & Title
In Hawaii, FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold what percentage of the sales price when purchasing property from a foreign person?
A5%
B10%
C15%✓ Correct
D20%
Explanation
Under FIRPTA, when a foreign person sells U.S. real property, the buyer must withhold 15% of the gross sales price and remit it to the IRS unless an exemption applies.
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