STG Certification of Non-Foreign Status (Entity) (Individual)

Organizational Guidelines

STG Certification of Non-Foreign Status (Entity) (Individual)

Guideline Document
V 1


The Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA" - located in Section 1445 of the Internal Revenue Code; 26 USCS § 1445) provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor (seller) is a "foreign person." No withholding is required under section 1445 if the transferor of a U.S. real property interest is not a foreign person.

A transferee of a U.S. real property interest is not required to withhold under section 1445(a) if, prior to or at the time of the transfer, the transferor furnishes to the transferee a certification that:

(A) States that the transferor is not a foreign person.

(B) Sets forth the transferor's name, identifying number and home address (in the case of an individual) or office address (in the case of an entity), and

(C) Is signed under penalties of perjury.

This FIRPTA Certification form follows the sample certifications provided in 26 CFR 1.1445-2.

Other exemptions from withholding may apply.

Underwriting Requirements:

There are two different types of FIRPTA Certifications: one for individuals (natural persons) and another for entities (e.g., corporation, partnership, limited liability company, etc.).

The FIRPTA Certification must be signed by all transferors (sellers). If the transferor is an entity, the FIRPTA Certification must be signed by a responsible officer in the case of a corporation, by a general partner in the case of a partnership, and by a trustee, executor, or equivalent fiduciary in the case of a trust or estate.

A FIRPTA Certification may not be relied upon if the transferee has actual knowledge or receives notice that it is false.

The Buyer must retain the FIRPTA Certification until the end of the fifth taxable year following the taxable year of transfer and must file the Certification with the Internal Revenue Service if required by regulation or otherwise.

If the Seller is unable to sign the Certification (e. g., because it is a non-resident alien, foreign corporation, etc.), contact underwriting personnel.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.