Escrow & Title
A 'FIRPTA withholding' at a NC closing applies when:
AThe buyer is a foreign national
BThe seller is a foreign person or entity, requiring the buyer to withhold a percentage of the purchase price for IRS remittance✓ Correct
CThe property is located in a federal flood zone
DA construction loan is involved
Explanation
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold a percentage of the purchase price when the seller is a foreign person or entity and remit it to the IRS.
Related North Carolina Escrow & Title Questions
- A deed is considered delivered and accepted in North Carolina when:
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