FIRPTA Affidavit
The seller says if they count as foreign for U.S. tax rules, which decides if some of their proceeds get held back.
What it is
FIRPTA is a federal law about foreign sellers of U.S. property. In this affidavit the seller swears, under penalty of perjury, whether they count as a foreign person under U.S. tax rules. If the seller is foreign, the buyer is usually required to withhold part of the sale price and send it to the IRS, unless an exception applies.
When it's used
- On almost every U.S. residential sale
- Signed by the seller during escrow
- Reviewed by escrow before closing
What's on it
- The seller's name and tax identification number
- A statement of whether the seller is a foreign person
- The seller's address
- The seller's signature under penalty of perjury
Tips and common mistakes
- Ask early if the seller lives abroad or isn't a U.S. citizen
- Foreign sellers should talk to a tax advisor about withholding and exceptions
- Withholding affects how much money the seller gets at closing
- Escrow usually handles the paperwork, but it starts with the seller's answers
How your Akoni VA handles it
Your VA makes sure the seller gets and signs the affidavit early, and flags it for you if the seller may be a foreign person so there are no surprises at closing.
This page is general information to help agents and clients understand the form. It is not legal or tax advice. Forms and rules vary by state and change over time, so always use your brokerage's current version and check with a qualified professional.