The affidavit provides evidence to avoid mandatory FIRPTA withholding, clarifies tax reporting responsibilities, and protects buyers and sellers by documenting the transferor's U.S. status for federal tax purposes.
Several parties encounter or complete the affidavit during property transfers, closings, and investor sales.
Each party has different responsibilities: sellers must provide accurate statements; buyers and agents must retain the affidavit for tax and audit purposes.
A seller signs to certify non-foreign status and provides identification. The seller's truthful declaration prevents erroneous FIRPTA withholding and may be relied on by the buyer or withholding agent when completing closing procedures and tax reporting.
The settlement agent collects, notarizes, and retains the affidavit. The agent uses it to determine whether to withhold under IRC §1445 and to support the escrow closing file for future audits or IRS inquiries.
Full legal name, mailing address, and taxpayer identification (SSN or EIN). Use exactly the name that appears on government ID and tax records to prevent mismatches that could trigger withholding or backup withholding under IRS rules.
Concise property description, sale or transfer date, and parties involved. Align this information with the deed, escrow instructions, and closing statement so the affidavit can be matched to the recorded transfer without ambiguity.
A clear statement that the declarant is not a foreign person for purposes of IRC §1445 and FIRPTA. The language should explicitly state U.S. citizenship or domestic status and any basis for exemption from withholding.
Taxpayer identification statement with explicit SSN or EIN and a clause acknowledging accuracy. This reduces the risk of backup withholding and provides the buyer with the information necessary for IRS reporting.
Declarant signature, printed name, and date. The signature must be original for notary acknowledgement unless a permitted electronic notarization process is used under state law, to ensure validity and enforceability.
Notary block with official language, signature, seal, and commission expiry. Notary attestations confirm the declarant's oath or affirmation and are commonly required by title companies and buyers to accept the affidavit.
Affidavit should be provided to buyer before or at closing to avoid automatic withholding.
If a compliant affidavit is not available, buyer may be required to withhold under IRC §1445.
Buyer and settlement agent should retain the affidavit in the closing file for IRS review.
Withholding agents must follow IRS reporting and deposit rules if withholding occurs.
Correct and replace erroneous affidavits promptly to mitigate withholding liabilities.
| Criteria | CA Non-Foreign Affidavit | W-9 |
|---|---|---|
| Primary Purpose | avoid firpta withholding | report tin to payer |
| Notarization | often required | not required |
| Use case | real estate transfers | payments subject to reporting |
| Typical signer | transferor/seller | payee/recipient |
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial, no card | Varies by vendor | Varies by vendor | Varies by vendor | Varies by vendor |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |