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The Federal government requires a withholding of 10% of the gross proceeds any time a foreign seller conveys property. Escrow will also withhold an additional 5% because the foreigner is not a Hawaii resident. The 5% withholding applies to all out-of-state owners. Buyer and seller alike should be aware of nuances pertaining to the Foreign Investor Real Property Tax Act (FIRPTA) and the Hawaii Investor Real Property Tax Act (HARPTA). As soon as an escrow is opened, an affidavit is forwarded to the seller. This normally comes from the escrow company. A copy of the completed affidavit is provided to the … (0 comments)
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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