What is FIRPTA?
The Foreign Investment in Real Property Tax Act (FIRPTA), enacted in 1980, requires foreign persons to pay U.S. income tax on the gains they make from selling U.S. real estate. FIRPTA applies to the sale of interests held by nonresident aliens and foreign corporations in real property within the United States. FIRPTA imposes a duty on the buyer in the transaction (not the title company) to deduct and withhold a portion of the sales price to send and report to the Internal Revenue Service.
Solutions & Precautions For Real Estate Transactions in a Time of Crisis
As we navigate each day together during this difficult time, we’re all finding ourselves quickly adapting to change in daily life and business. Although the news and recommendations are evolving rapidly, here are some solutions and measures we would like for you to be aware of in order to help everyone continue to move forward in their real estate transactions with Texas National Title.
OPTION MONEY: What is it?
Option money is a very important piece of a buyer’s contract. When a buyer pays an option fee they are purchasing the unrestricted right to cancel the contract in the time provided for in the contract. This timeline is intended to be used for buyer due diligence and if the buyer finds something that causes them to want to cancel the contract they can do so for any reason as long as the termination is done timely.
Let’s closely examine the contractual language of Paragraph 23 to discuss some key points:
Many developers and real estate investors seeking to maximize lot space are interested in taking a single family lot and converting them into two (or more) unit condominium buildings. This allows one single family property to be changed into two units that can now be sold to separate buyers.
Congratulations! Your file has made it to the closing table and all parties have signed. Now what?? Many buyers and sellers come to closing with misconceptions about what they think will happen next.
Taxation of real property in Texas is controlled by provisions found in the Texas Constitution and the Texas Tax Code. Because taxes are based on the assessed value of the property, property taxes are commonly referred to as “ad valorem” taxes.
Wire fraud has become rampant in our industry. The FBI received 351,937 Business Email Compromise Complaints (BEC) in 2018 or over 900 complaints per day, most of them involving some type of wire fraud. The Internet Crime Center (IC3) was formed in May of 2000 and has received a total of 4.4 million complaints since being formed. In the US, BEC scams accounted for 1.3 billion dollars in losses.
TRUSTS IN GENERAL:
What are they?
Trusts in themselves are not legal entities which can own, manage or sell property. A trust operates through one or more trustees, who usually are individuals but may be corporations. It is these trustees who hold legal title to the property for the benefit of the beneficiaries of the trust.
What is a survey?
A real property survey is a report that indicates the location of improvements relative to the boundaries of a property. A real property survey report generally contains an illustration of the physical features of the property and a written report detailing the surveyor’s opinions and concerns.
What are some reasons why we have to have a survey?