If you receive exemption certifications and the transferor's agent or your agent (the transferee's agent) has actual knowledge that the certification is false or that the corporation is a foreign corporation, the agent must notify you, or the agent will be held liable for the tax. The agent's liability is limited to the amount of pay the agent gets from the transaction.

 

An agent is any person who represents the transferor or transferee in any negotiation with another person (or another person's agent) relating to the transaction, or in settling the transaction.

 

A person is not an agent if the person only performs one or more of the following acts related to the transaction:

 

• Receipt and disbursement of any part of the consideration,

• Recording of any document,

• Typing, copying, and other clerical tasks,

• Obtaining title insurance reports and reports concerning the condition of the property, or

• Transmitting documents between the parties.

 

A Withholding Agent is personally liable for the full amount of FIRPTA withholding required to be withheld, plus penalties and interest. A Withholding Agent is any person having the control, receipt, custody, disposal or payment of income that is subject to withholding. Generally, the person who pays an amount to the foreign person subject to withholding, must do FIRPTA withholding.