What Is FIRPTA in Florida Real Estate?
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold a portion of the purchase price when the seller is a foreign person.
If handled incorrectly, FIRPTA mistakes can:
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Create buyer liability
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Delay closing
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Trigger IRS penalties post-closing
Proper affidavits and documentation are critical. Choosing the best title company is imperative!
Why FIRPTA Issues Are Increasing in Southwest Florida
Southwest Florida remains a hot market for:
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International owners
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Seasonal residents
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Non-homesteaded properties
This makes FIRPTA compliance more important than ever, especially in cash or remote closings.
Seller Impersonation Fraud in Florida
Florida continues to be a top target for seller impersonation fraud, especially involving:
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Vacant land
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Rental properties
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Non-owner-occupied homes
Common Red Flags Realtors Should Watch For
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Seller refuses video verification
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Email-only communication
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Pressure for fast closings
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Last-minute wiring changes
How Realtors Can Reduce Fraud Risk
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✔️ Involve title early on remote sellers
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✔️ Verify identity beyond emailed documents
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✔️ Confirm wiring instructions verbally
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✔️ Question urgency and pricing anomalies
Fraud prevention is a team effort, and we can help!
The Title Link has the ability to verify the identity of any potential Buyer or Seller. Let us know if you need help verifying that your client is who they say they are! Powered by IntelliCheck.