Seller Advisory. Tax Withholding Obligations. Seller is advised that upon closing, Federal and State law may require Escrow to withhold a portion of Seller’s proceeds. Under Federal law, the Foreign Investment in Real Property Act (“FIRPTA”) requires every person who purchases real property located within the United States from a “foreign person” to deduct and withhold from Seller’s proceeds ten present (10%) of the gross sales price, with certain exceptions, and to pay the amount withheld into the Internal Revenue Service. A “foreign person” includes a non-reside4nt alien individual, foreign corporation, foreign partnership, foreign trust and foreign estate. Additionally, subject to certain exceptions, Escrow is required to withhold a portion of Seller’s instruction, affidavit or statement, and to perform any acts reasonable or necessary to carry out the provisions of FIRPTA or Oregon law. If Seller is a foreign person as defined by FIRPTA, or a non-resident individual or corporation as defined under Oregon law, Seller and Buyer instruct Escrow to take all necessary steps to comply therewith.
Seller Advisory. Oregon State Tax Withholding Obligations: Seller is is not a permanent resident of the State of Oregon. Subject to certain exceptions, Escrow is required to withhold a portion of the Seller’s proceeds if Seller is a non-resident individual or corporation as defined under Oregon law. Xxxxx and Xxxxxx agree to cooperate with Escrow by executing and delivering any instrument, affidavit or statement as requested, and to perform any acts reasonable or necessary to carry out the provision of Oregon law. This below change is only in the New Construction Sale Agreement:
Seller Advisory. OREGON STATE TAX WITHHOLDING OBLIGATIONS: Subject to certain exceptions, Escrow is required to withhold a portion of Seller’s proceeds if Buyer is a non-resident individual or corporation as defined under Oregon law. Buyer and Seller agree to execute and deliver, as appropriate, any instrument, affidavit or statement, and to perform any acts reasonable or necessary to carry out the provisions of Oregon law. 241 15.2 SELLER/BUYER ADVISORY: FIRPTA TAX WITHHOLDING REQUIREMENT: Seller and Buyer are advised that upon Closing, a Federal law, known 242 as the Foreign Investment in Real Property Tax Act ("FIRPTA"), requires buyers to withhold a portion of a seller’s proceeds if the real property is located within 243 the United States and the seller is a "foreign person" who does not qualify for an exemption (“Withholding Requirement”). A "foreign person" includes a non- is no Withholding Requirement, even if the buyer is a “foreign person”, if: (i) The purchase price of the property is not more than $300,000; and (ii) The property will be occupied as a residence by a buyer who is an individual (or a member of his/her family) (iii) for at least 50% of the number of days (excluding days the property is vacant) it is used by such person during each of the first two 12-month periods following the date of closing; (b) The Withholding Requirement will be ten percent (10%) of the purchase price when the buyer is a “foreign person” and the purchase price is over $300,000, but does not exceed $1,000,000, and (a)(ii) and (iii) above apply; and (c) The Withholding Requirement will be a fifteen percent (15%) of the purchase price when the buyer is a “foreign person” and the purchase price is over $1,000,000, regardless of use of the property. Subject to certain exclusions, the amount deducted from a seller’s sales proceeds may be up to ten percent (10%) of the gross sales price, and said amount must be delivered to the Internal Revenue Service (“IRS”) within twenty 244 resident alien individual, foreign corporation, foreign partnership, foreign trust or a foreign estate. Generally, the following rules apply under FIRPTA: (a) There 245 246 247 248 249 250 251 Buyer Initials / Date Seller Initials / Date This form has been licensed for use solely by pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC. 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272
