Firpta and Colorado Withholding Sample Clauses

The FIRPTA and Colorado Withholding clause addresses the requirements for tax withholding when a property is sold by a foreign person or under Colorado state law. It specifies the obligations of the parties to comply with the Foreign Investment in Real Property Tax Act (FIRPTA), which may require the buyer to withhold a portion of the sales price if the seller is a non-U.S. resident, as well as any applicable Colorado state withholding rules. This clause ensures that the necessary tax withholdings are made at closing, thereby protecting the buyer from potential liability for unpaid taxes and ensuring compliance with federal and state regulations.