As a result of the Protecting Americans from Tax Hikes Act (PATH) passed by Congress and signed into law in December, 2015 effective on the 16th of February, 2016 changes to the FIRPTA (Foreign Investment in Real Property Tax Act) go into effect. The withholding tax on foreign sellers will increase from 10% to 15% of the sale price of real estate. As with all real estate transactions “buyer beware.” If a buyer fails to determine if a seller is foreign or domestic the buyer could be held liable for any tax owed by a foreign seller. Check your purchase and sale agreement representations and warranties!