Here at Title Junction, our team of industry leading title insurance specialists has seen firsthand the various housing market situations that occur during the rise and fall of the global economies. The latest property trend that we've witnessed has been a direct result of the recent economic downturn that was felt worldwide, and that impacted consumers and investors everywhere. As the stock market plummeted, the housing market was quick to follow. With our national housing markets dropping, buyers from around the world seized the opportunity to purchase property at rarely before seen low rates.
What Is FIRPTA And Why It May Be Important To Your Property Sale
Fortunately, the housing market has been showing some significant signs of improvement. Home and property prices have been slowly, yet steadily, increasing over the last several months. The result of this recent market upswing? A major rise in the amount of homes being listed for sale, particularly from foreign investors who bought low and are hoping to profit during the market uptick.
If you are a foreign investor who is currently looking to list your U.S. home or properties for sale, it's important for you to understand the specific details listed in the Foreign Investment In Real Property Tax Act. Often referred to as FIRPTA, this specific tax act was created over 30 years ago. It's primary purpose? To mandate that, when foreign investors decide to sell their US properties (residential and/or corporate shares), there must be a designated tax percentage set aside before the transaction can be completed. While the responsibility of withholding the designated tax percentage (generally 10%) falls onto the buyer, it's important for sellers to also understand what is FIRPTA and how it may affect the overall progress of the property sale.
Title Junction: Managing All The Details Of FIRPTA For You
While it is possible to determine what is FIRPTA and what it means for your property sale on your own, the process can feel long and daunting. Fortunately, there is help for foreign national investors looking to sell their United States properties as quickly and conveniently as possible. Title Junction, a leading provider of accessible title insurance rates specializes in a wide range of closing services. As part of our portfolio of capabilities and expertise, we also deliver unparalleled services for managing FIRPTA mandates and requirements.
When partnering with Title Junction, you'll receive expert FIRPTA input, no matter what side of the property transaction you are. Whether you are a foreign real estate seller or foreign real estate investor, Title Junction will manage all the details of the purchasing process on your behalf. From assisting with communication and disclosing all relevant information, to overseeing the specific IRS mandated documents that must be remitted, Title Junction can quickly help streamline your property transaction. Our onsite team specialists even have the experience and capabilities to handle the funds withheld to satisfy FIRPTA requirements, and forward your IRS payment to ensure you enjoy the most convenient, stress-free property transaction experience possible.
Owner and Operator
Title Junction LLC