FIRPTA: Underwriting Guidelines

FIRPTA states that the transferor’s or the transferee’s agent may be liable for withholding under certain instances. Generally, a title agent acting in a fiduciary capacity only as an agent on behalf of Agents National Title is not considered an agent for the transferor or the transferee and is therefore not responsible for reporting under FIRPTA. However, if the Agents National Title agent is also acting in a separate capacity on behalf of the transferor or transferee (e.g., real estate agent or attorney), the agent may be obligated to comply with FIRPTA. Any amounts withheld must be reported to the IRS within 20 days from the date of the transfer, using IRS Forms 8288 and 8288A.