April 2025 - Republic Title

What is FIRPTA?

FIRPTA, or the Foreign Investment in Real Property Tax Act of 1980, imposes an income tax on foreign individuals or entities selling U.S. real property.

If the foreign seller has unpaid income tax, a lien may be placed on the buyer’s property, making the buyer liable for the unpaid tax.

Foreign individuals or entities selling property should consult a CPA or tax advisor before listing their property to determine if FIRPTA applies to their transaction. The CPA or tax advisor can assist the seller in obtaining necessary documents, such as the Non-Foreign Affidavit or Withholding Certificate, which may be required by the contract. They can also explain the withholding process and potential exemptions.

Republic Title of Texas is not responsible for determining whether the transaction is subject to FIRPTA withholdings.

Below are helpful links from the IRS to learn more about this Act and ways to obtain an Individual Tax Identification Number, apply for a W-7 and fill out the W-7 form:

• irs.gov/Individuals/International-Taxpayers/FIRPTA-Withholding
• irs.gov/Individuals/ITIN-Guidance- for-Foreign-Property-Buyers-Sellers
• irs.gov/pub/irs-pdf/iw7.pdf
• irs.gov/pub/irs-pdf/fw7.pdf

FIRPTA Q&A

Q: Who is responsible for FIRPTA withholding?
A: The buyer is responsible for withholding the potential for income tax under IRS regulations. This withholding is typically 10% or 15% of the purchase price when the property is sold by a Foreign Person. The real property serves as collateral to ensure the IRS receives the taxes due. If the buyer fails to make the payment, the IRS may seize the property or other assets or the buyer.

Q: Can’t the buyer assign the responsibility for withholding to the settlement or escrow agent?
A: No, IRS regulations do not allow the buyer to transfer their withholding responsibility to anyone, including the escrow or real estate agents. Escrow agents are not authorized to offer legal or tax advice.

Q: The seller is foreign, but has a social security number. We’re okay right?
A: Foreign citizens doing business and earning income in the United
These look similar to social security numbers. The test of whether FIRPTA withholding is required or not, is a statement made by the seller under penalty of perjury that they are not a non-resident alien for purposes of U.S. income taxation.

Q: What is a “non-resident alien” for purposes of U.S. income taxation?
A: Another way to explain that (although it may not cover all situations) is that the seller must either be a U.S. citizen or resident alien with a green card.

Q: The seller is taking a loss on their home. They don’t need to pay FIRPTA withholding, right?
A: No automatic exemption exists under FIRPTA for sellers taking a loss or realizing no gain. If a foreign seller believes they are exempt because they are not making a profit, they should consult with a tax professional. They may need to apply for a Withholding Certificate from the IRS using Form 8288-B. The seller should apply for this prior to listing the property to avoid delays.

Q: The seller lives in another country, but says they are a U.S. citizen. Isn’t withholding required?
A: U.S. citizens may be living in other countries. Current residency is not a good indication of FIRPTA status.

Q: A foreign seller doesn’t have a TIN and is willing
to pay the IRS. Can the money just be sent to the
IRS without a TIN?
A: No, the IRS requires that sellers of real property have TINs.

Q: A foreign seller only owns a portion of the property. How much money does the foreign seller owe?
A: The foreign seller is responsible for withholding on their share of ownership in the property. They should consult with a tax professional to determine the amount due.

Q: The property is under $300,000 and the buyer
is going to live in it. Doesn’t that automatically exempt it from withholding?
A: If the witholding was overpaid, the seller can apply for a refund through the IRS, but they may need to file specific forms and consult a tax expert.

Q: Isn’t a transaction from a foreign seller to a
foreign buyer exempt from withholding?
A: No. While the individuals are both Foreign Persons, the tax is an income tax unique to the individual.

Q: The FIRPTA withholding was paid at close of escrow, but not that much money was due to the IRS. How does the seller get their money back?
A: The seller can either in advance of closing file an 8288-B Application for Withholding Certificate to request a reduced amount or no withholding. The seller can also file a tax return the following year to obtain any refund due. A CPA or other tax expert should be consulted for guidance.

Q: The seller and buyer don’t want to pay a CPA to answer their questions. Can’t the real estate person or escrow person help with FIRPTA questions?
A: Escrow personnel and real estate agents may have experience
taxpayer’s situations.

Print Version

History of Earth Day

Earth Day was founded in 1970 as a day of education about environmental issues, and Earth Day 2024 occurs on Monday, April 22. The holiday is now a global celebration that’s sometimes extended into Earth Week, a full seven days of events focused on green living. The brainchild of Senator Gaylord Nelson and inspired by the protests of the 1960s, Earth Day began as a “national teach-in on the environment” and was held on April 22 to maximize the number of students that could be reached on university campuses. By raising public awareness of pollution, Nelson hoped to bring environmental causes into the national spotlight.

Earth Day History

By the early 1960s Americans were becoming aware of the effects of pollution on the environment. Rachel Carson’s 1962 bestseller “Silent Spring” raised the specter of the dangerous effects of pesticides on America’s countrysides. Later in the decade, a 1969 fire on Cleveland’s Cuyahoga River shed light on the problem of chemical waste disposal. Until that time, protecting the planet’s natural resources was not part of the national political agenda, and the number of activists devoted to large-scale issues such as industrial pollution was minimal. Factories pumped pollutants into the air, lakes and rivers with few legal consequences. Big, gas-guzzling cars were considered a sign of prosperity. Only a small portion of the American population was familiar with–let alone practiced–recycling.

Did you know? A highlight of the United Nations’ Earth Day celebration in New York City is the ringing of the Peace Bell, a gift from Japan, at the exact moment of the vernal equinox.

Elected to the U.S. Senate in 1962, Senator Gaylord Nelson, a Democrat from Wisconsin, was determined to convince the federal government that the planet was at risk. In 1969, Nelson, considered one of the leaders of the modern environmental movement, developed the idea for Earth Day after being inspired by the anti-Vietnam War “teach-ins” that were taking place on college campuses around the United States. According to Nelson, he envisioned a large-scale, grassroots environmental demonstration “to shake up the political establishment and force this issue onto the national agenda.”

Nelson announced the Earth Day concept at a conference in Seattle in the fall of 1969 and invited the entire nation to get involved. He later recalled, “The wire services carried the story from coast to coast. The response was electric. It took off like gangbusters. Telegrams, letters and telephone inquiries poured in from all across the country. The American people finally had a forum to express its concern about what was happening to the land, rivers, lakes and air—and they did so with spectacular exuberance.” Dennis Hayes, a young activist who had served as student president at Stanford University, was selected as Earth Day’s national coordinator, and he worked with an army of student volunteers and several staff members from Nelson’s Senate office to organize the project. According to Nelson, “Earth Day worked because of the spontaneous response at the grassroots level. We had neither the time nor resources to organize 20 million demonstrators and the thousands of schools and local communities that participated. That was the remarkable thing about Earth Day. It organized itself.”

On April 22, rallies were held in Philadelphia, Chicago, Los Angeles and most other American cities, according to the Environmental Protection Agency. In New York City, Mayor John Lindsay closed off a portion of Fifth Avenue to traffic for several hours and spoke at a rally in Union Square with actors Paul Newman and Ali McGraw. In Washington, D.C., thousands of people listened to speeches and performances by singer Pete Seeger and others, and Congress went into recess so its members could speak to their constituents at Earth Day events.

The first Earth Day was effective at raising awareness about environmental issues and transforming public attitudes. According to the Environmental Protection Agency, “Public opinion polls indicate that a permanent change in national priorities followed Earth Day 1970. When polled in May 1971, 25 percent of the U.S. public declared protecting the environment to be an important goal, a 2,500 percent increase over 1969.” Earth Day kicked off the “Environmental decade with a bang,” as Senator Nelson later put it. During the 1970s, a number of important pieces of environmental legislation were passed, among them the Clean Air Act, the Water Quality Improvement Act, the Endangered Species Act, the Toxic Substances Control Act and the Surface Mining Control and Reclamation Act. Another key development was the establishment in December 1970 of the Environmental Protection Agency, which was tasked with protecting human health and safeguarding the natural environment—air, water and land.

Since 1970, Earth Day celebrations have grown. In 1990, Earth Day went global, with 200 million people in over 140 nations participating, according to the Earth Day Network (EDN), a nonprofit organization that coordinates Earth Day activities. In 2000, Earth Day focused on clean energy and involved hundreds of millions of people in 184 countries and 5,000 environmental groups, according to EDN. Activities ranged from a traveling, talking drum chain in Gabon, Africa, to a gathering of hundreds of thousands of people at the National Mall in Washington, D.C. Today, the Earth Day Network collaborates with more than 17,000 partners and organizations in 174 countries. According to EDN, more than 1 billion people are involved in Earth Day activities, making it “the largest secular civic event in the world.”

source: www.history.com

City-fast-Facts-Website-Thumbnail-Euless

Spotlight on Euless

Click here for a printable version of the Euless Fast Facts and view all DFW Area Fast Facts here.

Whether you’re a lifelong resident or new to the area, there’s always something new to discover about your neighborhood. With that in mind, we created a Fast Facts sheet for cities and neighborhoods all over the DFW area. Our DFW Area fast facts have detailed real estate insights, things to do, places to shop and some of our favorite restaurants in each area.

Euless, Texas, is a welcoming suburban city located in the heart of the Dallas-Fort Worth metroplex. Known for its family-friendly environment and excellent schools, Euless offers residents a peaceful, well-maintained community with easy access to major highways and nearby cities. The city features a variety of parks, recreational opportunities, and local events, making it a great place for both relaxation and active living.

POPULATION

60K

AVERAGE HOUSEHOLD INCOME

$88K

MEDIAN AGE

36

HOUSING

41% OWN
59% RENT

AVERAGE SALES PRICE

$342K

AREA ACTIVITIES & FEATURES

• NRH20 INDOOR WATERPARK
• VILLAGES OF BEAR CREEK PARK
• TEXAS STAR GOLF COURSE
• ALLEY CATS ENTERTAINMENT
• CHISHOLM AQUATIC CENTER
• LASERWHIRLD WHIRLEYBALL
• C.R. SMITH AMERICAN AIRLINES MUSEUM
• QUARTER LOUNGE ARCADE
• BOWLERO ENTERTAINMENT CENTER
• ONSTAGE IN BEDFORD THEATER

FAVORITE LOCAL DINING & DRINK SPOTS

• SAVIANO’S • YORI • HALA CAFÉ • KORACHA THAI
RESTAURANT • OLDWEST CAFÉ • WOOD & GRAIN BISTRO •
• TWO SISTER’S RESTAURANT • EVERYTHING GERMAN •
• ZENA SUSHI • BIZZI’S BISTRO & WINE BAR •
• FRED’S DOWNTOWN PHILLY • BRONCO’S SPORTS BAR &
GRILL • GARDEN GRILLE RESTAURANT & BAR • RAMEN JOY •
• ANA’S ISLAND GRILL • FROM ACROSS THE POND •
ROSAKO’S SOUL FOOD & BBQ • PINEAPPLE GRILL •
• AHOYAMA • FAZENDA GAUCHA • MID CITIES CAFE •
• SUSHI SOHO • TEXAN KITCHEN • BAMBOO HOUSE •
• LIZZANO’S PIZZA • RAVEN’S GRILLE • CRABS PEAK •

FAVORITE LOCAL SHOPPING

• SHOPS AT NORTHEAST MALL • THE TRAVELING SISTERS •
• SHINE UNIQUE BOUTIQUE • HURST MARKETPLACE AND
CREATIVE CENTER • GIRLIGIRL BOUTIQUE • DEEP DIVE
VINTAGE • KELLY’S KLOSET •

AVERAGE DRIVE TIMES

Where To See Wildflowers in DFW

Spring is in bloom, and along with warmer temperatures and more daylight, fields of flowers—including tulips or the state’s pride, bluebonnets—are one of the season’s gifts. Whether you’re looking for a family photo op or want to teach your kids about how flowers grow, you don’t have to go far to find spectacular displays. Here are some of our favorite spots across Dallas-Fort Worth.

Print Version

Arbor Hills Nature Preserve
6701 W. Parker Rd., Plano

Bluebonnet Trail Greenbelt
Preston Meadow to Alma Rd., Plano

Bluebonnet Trails
201 NW Main St., Ennis

Cedar Hill State Park ($)
1570 FM 1382, Cedar Hill

Coppell Nature Park
367 Freeport Pwky., Coppell

Dallas Arboretum ($)
8525 Garland Rd., Dallas

Heard Natural Science Museum ($)
1 Nature Pl., McKinney

Fort Worth Botanic Garden
3220 Botanic Garden Blvd., Fort Worth

Fort Worth Nature Center & Refuge
9601 Fossil Ridge Rd., Fort Worth

Mt. Zion Cemetery
11872 MF 423, Frisco

The Rose Gardens of Farmers Branch
2610 Valley View Ln., Farmers Branch

Turtle Creek Conservancy
3333 Turtle Creek Blvd., Dallas

For more seasonal resources like this, head over to our DFW Area Resources page at: DFW Area Helpful Resources | Republic Title of Texas

Stay Informed with Our Comprehensive Guide to Real Estate Laws and Customs by State

Navigating real estate transactions across different states can be complex, with each state having its own set of rules and customs. To help make your transactions smoother, view our state-by-state guide, which includes vital information on closing procedures, taxes, fee splits, and more. Whether you’re a seasoned professional or new to the industry, this guide is an essential resource for staying informed.

You can easily access and download the PDF version of Your Guide to Real Estate Laws and Customs by State by clicking the link below. Be sure to save it for quick reference on all your future real estate deals.

Download the Guide

With commercial offices in both Uptown Dallas and Downtown Fort Worth, Republic Title’s team of eleven in-house attorneys and underwriters is committed to providing quick underwriting decisions. Our twenty-eight commercial closing teams, supported by the latest technology, are dedicated to handling any commercial closing swiftly and efficiently.

For additional tools and resources, be sure to explore our full suite of commercial resources available on our website at republictitle.com/commercial-resources

City-fast-Facts-Website-Thumbnail-Denton

Spotlight On Denton

Click here for a printable version of the Denton Fast Facts and view all DFW Area Fast Facts here.

Denton, Texas, is a vibrant and eclectic city located just north of the Dallas-Fort Worth metroplex. Known for its lively arts scene, historic downtown square, and prestigious universities, including the University of North Texas and Texas Woman’s University, Denton offers a unique blend of culture, music, and academic energy. The city hosts numerous music festivals and cultural events, making it a hub for creativity, while its charming neighborhoods and strong sense of community make it an inviting place to live and visit.

POPULATION

150K

AVERAGE HOUSEHOLD INCOME

$72K

MEDIAN AGE

30

HOUSING

49% OWN
51% RENT

AVERAGE SALES PRICE