When is this affidavit required?

The affidavit is used when a transferee faces withholding obligations under IRC §1445. If the transferor is non-foreign, a correct affidavit relieves the transferee from withholding duties in many transactions.

Who must sign the affidavit?

The transferor (seller) or an authorized officer of an entity must sign under penalty of perjury. An agent may sign if they have documented authority to act on behalf of the transferor.

Does the affidavit eliminate all buyer withholding risk?

A compliant affidavit generally relieves the buyer from withholding under IRC §1445, but buyers and title companies should confirm the affidavit meets statutory requirements and retain it in closing records.

Can this affidavit be signed electronically?

Electronic signatures are generally acceptable under ESIGN (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.

Is notarization always required?

Notarization is commonly required by title and escrow practices; state rules vary. Confirm local closing requirements and whether a jurat or acknowledgement is preferred.

How do I correct mistakes after signing?

If errors are discovered, execute a corrected affidavit or an amended statement signed and dated by the transferor. Document the correction in closing files and notify the transferee and title insurer.

Electronic Signature
Templates
Legal
Texas Non-Foreign Affidavit Under IRC 1445

Texas Non-Foreign Affidavit Under IRC 1445

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Texas Non-Foreign Affidavit Under IRC 1445 Is

The Texas Non-Foreign Affidavit Under IRC 1445 is a sworn statement used in U.S. real property transactions to establish that a transferor is not a foreign person for purposes of federal withholding under Internal Revenue Code section 1445. When a buyer or transferee receives a properly completed affidavit, the transferee may be relieved from the obligation to withhold tax on the disposition of a United States real property interest. The affidavit is typically provided to the buyer, retained in closing records, and relied upon to avoid mandatory backup withholding at closing.

Why this affidavit matters in real property closings

A correct non-foreign affidavit prevents unnecessary withholding, supports clear title transfer, and reduces closing delays. It documents the transferor’s tax status for the buyer, escrow agent, and title company and helps comply with IRC §1445 withholding rules.

Who typically prepares and accepts this affidavit

Each participant relies on the affidavit to determine tax treatment and to complete closing paperwork accurately.

Title companies and escrow agents who need documentation to determine withholding obligations during closing.
Buyers/transferees and their settlement agents who must withhold unless they receive acceptable documentation.
Transferors/sellers who must attest to non-foreign status to avoid buyer withholding.

Core components to include in a professional affidavit

A complete affidavit includes identity details, tax identification, property description, an explicit non-foreign declaration, signature under penalty of perjury, and any required notary acknowledgment.

Identity

Full legal name of transferor exactly as on government ID or tax records to ensure correct TIN matching and legal attribution.

Tax ID

Transferor’s U.S. taxpayer identification number (SSN or EIN) entered accurately to prevent backup withholding triggers.

Property

Legal description or street address of the U.S. real property interest being transferred so the affidavit ties to the specific transaction.

Declaration

Clear statement that the transferor is not a foreign person under IRC §1445, including citation to the statute where appropriate.

Signature

Signed and dated by the transferor under penalty of perjury; signing method and date must be legible and contemporaneous with closing.

Notary block

Notary acknowledgment or jurat as required by local practice to authenticate the sworn statement for title and escrow records.

Key security and compliance points to record with the affidavit

Identity proofing: Use government ID verification

Audit trail: Record timestamp and IP address

Data encryption: TLS 1.2/1.3 in transit

At-rest encryption: AES-256 encryption

Legal compliance: ESIGN and UETA compliant

Healthcare/PII: HIPAA BAA available if required

Step-by-step: completing the affidavit for closing

Follow these steps to prepare a usable non-foreign affidavit that the transferee and title company can accept without delay.

01

Gather ID: Collect government ID and the transferor’s TIN before filling fields.
02

Enter details: Complete name, TIN, and precise property description in MM/DD/YYYY formats where dates are required.
03

Sign under oath: Signer executes the affidavit under penalty of perjury; signature must be dated.
04

Notarize if needed: Attach notary acknowledgment or jurat if local closing practice requires notarization.

How to set up a digital workflow for this affidavit

Configure a simple routing and authentication workflow so transferor signatures, notarization, and title review occur in the correct order.

Field	Configuration
Signer order	Transferor signs first, then notary, then transferee/title reviews
Authentication	Use email plus SMS or knowledge-based verification for higher assurance
Document retention	Enable immutable audit trail and PDF/A export
Notifications	Automatic email receipts to all parties and escrow

Typical document flow in a closing using an affidavit

A predictable sequence reduces errors: prepare, sign, notarize, deliver, and retain in closing files.

Prepare: Populate all identifying and transaction fields accurately
Sign: Transferor signs under penalty of perjury
Notarize: Notary completes jurat or acknowledgment when required
Retain: Buyer/title retains affidavit in closing package

Key penalties and risks to avoid

Backup Withholding: 24% backup withholding

Buyer Liability: Transferee may face withholding duty

False Statement: Penalties for perjury or false affidavit

Closing Delay: Title or escrow may refuse disbursement

Tax Penalties: Failure to withhold triggers IRC penalties

Reputational Risk: Title issues and post-closing claims

Common pitfalls when preparing this affidavit

Using an incorrect or mismatched taxpayer identification number that causes backup withholding and delays in funds disbursement.
Providing a vague or incomplete property description that prevents title companies from accepting the affidavit for closing records.
Failing to sign under penalty of perjury or omitting a required notary acknowledgment, leading to rejection by the transferee.
Attempting to rely on an unsigned or post-dated affidavit, which can create buyer liability for withholding and post-closing remediation.

eSignature vendor comparison for affidavit execution and storage

Key vendor attributes for executing affidavits electronically: per-user price, trial availability, bulk send, audit trail, HIPAA BAA availability, and envelope or session caps.

	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	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about the Texas Non-Foreign Affidavit Under IRC 1445

Answers to common questions on when to use the affidavit, who signs it, whether e-signatures are acceptable, and how to correct errors.

Need help? Contact support

When is this affidavit required?
The affidavit is used when a transferee faces withholding obligations under IRC §1445. If the transferor is non-foreign, a correct affidavit relieves the transferee from withholding duties in many transactions.
Who must sign the affidavit?
The transferor (seller) or an authorized officer of an entity must sign under penalty of perjury. An agent may sign if they have documented authority to act on behalf of the transferor.
Does the affidavit eliminate all buyer withholding risk?
A compliant affidavit generally relieves the buyer from withholding under IRC §1445, but buyers and title companies should confirm the affidavit meets statutory requirements and retain it in closing records.
Can this affidavit be signed electronically?
Electronic signatures are generally acceptable under ESIGN (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.
Is notarization always required?
Notarization is commonly required by title and escrow practices; state rules vary. Confirm local closing requirements and whether a jurat or acknowledgement is preferred.
How do I correct mistakes after signing?
If errors are discovered, execute a corrected affidavit or an amended statement signed and dated by the transferor. Document the correction in closing files and notify the transferee and title insurer.

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