As a seller in the real estate market, it's important to stay informed on changes in tax law that may affect your transactions. One such law is the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), which affects foreign buyers investing in U.S. real estate.Under FIRPTA, when a foreign person sells U.S. real estate, the buyer is required to withhold a portion of the purchase price and remit it to the IRS. This withholding requirement is designed to ensure that foreign sellers pay their U.S. tax obligations on any gains from the sale of U.S. real property.For buyers, it's important to understand the implications of FIRPTA when considering a purchase from a foreign seller. If the buyer fails to comply with the FIRPTA withholding requirement, they may be held liable for any unpaid tax obligations. It's important for buyers to work closely with their real estate agent and attorney to ensure compliance with FIRPTA.For sellers, FIRPTA may have an impact on the sale of their property. The withholding requirement may reduce the amount of cash the seller receives at closing, and failure to comply with FIRPTA may result in penalties and interest. It's important for sellers to work with their real estate agent and attorney to understand the potential impact of FIRPTA on their transaction.In recent real estate news, the Protecting Americans from Tax Hikes (PATH) Act of 2015 made some significant changes to FIRPTA. These changes included increasing the withholding rate from 10% to 15% for properties sold for $1 million or more, and increasing the exemption amount for certain foreign pension funds.Overall, FIRPTA is an important law for both buyers and sellers to understand in the real estate market. With the guidance of experienced professionals, buyers and sellers can navigate the potential impact of FIRPTA on their transactions.

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As a buyer or seller in the real estate market, one question that's bound to come up is "how much is the commission?" It's an important question to ask because it can directly impact your bottom line. The commission is the fee that real estate agents charge for their services, and it's typically a percentage of the sale price of the home. In this blog, we'll take a closer look at how much the commission is for buyers and sellers, as well as some real estate news.For sellers, the commission is often the largest expense associated with selling their home. For residential real estate transactions, the standard commission is 6% of the home's sale price, which is typically split evenly between the buyer's agent and the seller's agent. This means that if you sell your home for $300,000, the commission would be $18,000, with each agent receiving $9,000. However, it's important to note that the commission is negotiable, and some agents may be willing to lower their commission if they believe it will help them secure the listing.As a buyer, you may be wondering if you have to pay a commission. The good news is that in most cases, the answer is no. The seller is typically responsible for paying both the buyer's and seller's agents' commissions, which are usually taken out of the sale proceeds. This means that as a buyer, you don't have to worry about paying any out-of-pocket expenses for the services of a real estate agent.Now, let's take a look at some real estate news. In recent years, there has been a push for more transparency in the real estate industry, particularly when it comes to commission. Some consumers have argued that the commission structure is outdated and that it's not always clear what services agents are providing for their fees. As a result, some companies are experimenting with new commission models, such as flat-fee or hourly rates, to give consumers more options.Additionally, there have been some legal challenges to the traditional commission structure. In 2019, a class-action lawsuit was filed against the National Association of Realtors (NAR) and several large real estate brokerages, alleging that they conspired to require sellers to pay a commission to the buyer's agent, even when the seller's agent did not provide any services to the buyer. The lawsuit is ongoing, and it could have significant implications for the real estate industry.In conclusion, the commission is an important factor to consider when buying or selling a home. For sellers, the standard commission is 6% of the sale price, but it's negotiable. For buyers, the commission is typically paid by the seller, so there are no out-of-pocket expenses. As the real estate industry continues to evolve, we may see changes to the commission structure, but for now, it remains an essential part of the buying and selling process.

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One of the most important aspects of buying or selling a home is the inspection contingency clause. This clause is designed to protect both buyers and sellers from unexpected issues that may arise during the home buying process. In this blog, we’ll discuss how buyers and sellers can use the inspection contingency clause to protect their investment.Buyers:For buyers, the inspection contingency clause is a crucial part of the home buying process. This clause gives buyers the opportunity to hire a professional home inspector to thoroughly examine the property and identify any potential issues. If the home inspector uncovers any major issues, the buyer can either negotiate with the seller to have the issues repaired or walk away from the deal altogether.Without an inspection contingency clause, buyers could end up with unexpected repairs and expenses after closing on the home. This could potentially lead to financial hardship and even the loss of the home.Therefore, it’s important for buyers to include an inspection contingency clause in their purchase agreement and to hire a reputable home inspector to thoroughly examine the property. This will help ensure that buyers are making an informed decision about their investment and are protected from any unforeseen issues.Sellers:Sellers also benefit from the inspection contingency clause. By providing buyers with the opportunity to inspect the property, sellers can identify any potential issues ahead of time and address them before they become a problem.If a seller discovers any major issues during the inspection, they can either choose to have the issues repaired or negotiate with the buyer about potential solutions. By being proactive about addressing any issues, sellers can help ensure a smoother transaction and avoid any potential legal issues down the line.Additionally, sellers who are upfront about any potential issues with the property may have an easier time selling their home. Buyers appreciate transparency and honesty in the home buying process and are more likely to feel confident in their investment if they know that the seller has been upfront about any potential issues.Protect Your Investment with the Inspection Contingency Clause:Whether you’re a buyer or a seller, it’s important to protect your investment with the inspection contingency clause. By including this clause in your purchase agreement and hiring a reputable home inspector to examine the property, you can help ensure that you’re making an informed decision about your investment and avoid any potential legal issues down the line.If you’re a buyer, don’t hesitate to ask for an inspection contingency clause in your purchase agreement. If you’re a seller, be proactive about addressing any potential issues with the property and provide buyers with the opportunity to inspect the property before closing.Overall, the inspection contingency clause is a crucial part of the home buying process and should not be overlooked. By taking the time to protect your investment with this clause, you can avoid potential issues and feel confident in your decision to buy or sell a home.

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