Contracts
A Kentucky real estate transaction subject to FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to:
AObtain KREC approval for the foreign seller
BWithhold a percentage of the purchase price for IRS remittance if the seller is a foreign person✓ Correct
CUse a different title company than normal
DFile a special disclosure form with HUD
Explanation
FIRPTA requires buyers to withhold 15% of the purchase price (or a different applicable rate) from foreign sellers and remit it to the IRS unless an exemption applies.
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