I’m in the process of purchasing a Rehab house when I came across a document from escrow called a “Buyer’s Affidavit” it states:
“THAT BUYER IS ACQUIRING PROPERTY FOR USE AS A RESIDENCE AND THAT SALES PRICE DOES NOT EXCEED $300,000.00”
“I am acquiring the real property for use as a residence. I have plans that I or a member of my family will reside in it for at least 50% of the number of days it will be is use during each of the 2 12 month periods following the transfer of the property to me. I understand that the members of my family that are included in the last senence are my brother(s), sister(s) ancestor, decendents, or spouse.”
“I am making this affidavit in order to esablish an exemption from withholding a proption of the sales price of the property under the Internal Revenue Code 1445.”
“I understand that if the information in this affidavit is not correct, I may be liable to the Internal Revenue Service for up to 10% of the purchase price of the property, plus interest and penalties”
Alittle info about the house. Cost $440,000. Comps at $540,000+. I will not be living in the house. House is basically going to be rehabbed and sold hopefully within 6 months. I’ve basically done a couple of assignment of contracts, but this is the actual 1st house I’m going to rehab. It’s in the city of Los Angeles, CA. Reading a couple of the quotes it doesn’t make sense. Can someone assist in deciphering the quotes?