Non-Foreign Seller Information Sheet - Oklahoma Real Estate Commission (Page 2 of 2) in pdf

WHO MAY ACT AS A “QUALIFIED SUBSTITUTE” UNDER FIRPTA. Under FIRPTA, the Buyer’s Broker or any

person (including an attorney or Title Company) responsible for closing the transaction may be a “Qualified Substi-

tute” . The Seller’s Broker may NOT be a “Qualified Substitute” .

EXCEPTION FOR NON-FOREIGN SELLERS DOES NOT APPLY IF THERE IS KNOWLEDGE OR NOTICE THAT

THE SELLER’S AFFIDAVIT OR QUALIFIED SUBSTITUTE STATEMENT IS FALSE. In the case of any of the fol-

lowing, the Buyer must retain and remit ten percent (10%) of the amount realized from the sale of the property to

the IRS within 20 days of closing (Generally speaking, the “amount realized” is the sales/purchase price of the Real

Estate):

1) The Buyer or Qualified Substitute has actual knowledge that either the Seller’s Affidavit or the Qualified

Substitute Statement is false;

2) The Buyer receives notice from the Seller’s Broker, Buyer’s Broker or the Qualified Substitute that the

Seller’s Affidavit or the Qualified Substitute Statement is false;

3) The Qualified Substitute receives notice from the Seller’s Broker or Buyer’s Broker that the Seller’s Affidavit

is false;

4) The United States Secretary of Treasury, by regulations, requires the Buyer or the Qualified Substitute to

furnish a copy of the Seller’s Affidavit or the Qualified Substitute Statement to the Secretary of Treasury and

the Buyer or Qualified Substitute fails to furnish a copy of the Affidavit or Statement at the time and in the

manner as required by the regulations.

AGENT TO THE TRANSACTION OR A QUALIFIED SUBSTITUTE LEARNS THE SELLER’S AFFIDAVIT OR

QUALIFIED SUBSTITUTE STATEMENT, IS FALSE. Such agent or Qualified Substitute MUST notify the Buyer

at such time and in such manner as required by the regulations. If the Seller’s Broker, Buyer’s Broker or Qualified

Substitute fails to provide notice of a false affidavit as required by the regulations, such agent or Qualified Substitute

shall have the same duty to deduct and withhold that the Buyer would have had if the agent or Qualified Substitute

had complied with the notice requirements.

IRS PENALTIES FOR VIOLATIONS UNDER FIRPTA. Buyers who fail to withhold and fail to obtain proof of an ap-

proved exemption may be held liable for the Seller’s tax that should have been withheld on the sale. In the event an

agent or Qualified Substitute fails to notify a Buyer of a false Seller’s Affidavit or false Qualified Substitute Statement

as may be the case, the agent and/or Qualified Substitute may be liable for an amount up to the amount of com-

pensation the agent or Qualified Substitute derived from the transaction. In addition to the above, criminal penalties

and other civil penalties and interest may apply.

PARTIES SHOULD CONSULT WITH QUALIFIED PROFESSIONALS. Foreign Sellers and Buyers dealing with

transactions involving Foreign Sellers should consult with the appropriate professional, i.e. a title company, accoun-

tant, and/or attorney.

IRS PUBLICATION. IRS Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities provides

more information and is available by going to

This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission.

OREC NON-FOREIGN SELLER INFORMATION SHEET (11-2016)

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Non-Foreign Seller Information Sheet - Oklahoma Real Estate Commission Page 2