Escrow & Title
The FIRPTA withholding rule requires buyers to withhold what percentage of the sale price when purchasing from a foreign (non-US) seller?
A5%
B10%
C15%✓ Correct
D20%
Explanation
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross sale price (or 10% for principal residences under $1 million) when buying from a foreign person, to ensure US tax obligations are met.
Related Massachusetts Escrow & Title Questions
- In Massachusetts, the seller at a residential closing typically receives a check (or wire) for:
- In Massachusetts, the attorney conducting a real estate closing represents:
- Under Massachusetts law, a valid deed must contain all of the following EXCEPT:
- In Massachusetts, the 'abstract of title' is a document that:
- Under Massachusetts recording law, 'constructive notice' is given by:
- The ALTA/NSPS survey is often required by lenders at closing in Massachusetts to:
- In Massachusetts, a 'quitclaim deed' provides the grantee with:
- A Massachusetts property has a tax taking lien from 2005. The property was not sold at auction and the lien was never cleared. When the property is sold today:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →