Buying from an international seller?

[IsDVCForMe?]

Has anyone bought resale from an international seller? What was the process like? Is there anything to be aware of?

 

[pzw90]

Only should be the addition of FIRPTA, see below recent thread

Thread 'FIRPTA filing'

Feb 9, 2026

I have a delayed closing on a contract that should be done at the end of this month and I got an email stating that I need to call to provide my tax info (SSN) for FIRPTA filing. It's been a few months since I did all the paperwork and payment and everything for this contract.

Is this normal? I'm just worried it's some type of scam. My other contract didn't do this.

• Nicnicnic.nic
• Replies: 28
• Forum: Purchasing DVC

 

[Chili327]

I think it may just take longer?

 

[Genie+]

I’d skip international seller, especially far out closing date deadlines, unless the deal was way too good to pass up.

Google says:

Key Reasons to Avoid International Sellers:

• FIRPTA Compliance: A significant portion of the sale price (often 15%) is withheld by the IRS until taxes are cleared, adding complexity, potential delays, and the need for a tax ID (ITIN) for the seller.
• Longer Closing Times: Due to the extra legal and tax documentation required, the closing process can be extended, which might be frustrating for buyers.
• Potential for Complications: If the FIRPTA paperwork is not handled correctly, it can lead to issues with the IRS months after closing.
• Seller Communication/Signatures: Coordinating with international sellers, who may be in different time zones or have multiple owners, can sometimes cause delays in obtaining necessary signatures.

Potential Advantage (Exceptions):

• Easier ROFR Approval: Because the process is more complicated, some, including DVC Fan, note that Disney sometimes waives its Right of First Refusal more readily, as they may prefer to avoid the extra administrative burden of a foreign transaction.

 

[VGCgroupie]

Yes I have. FIRPTA is the only thing that will be different. With that said I only moved forward because it was a rare contract (Aul sub) I wouldn’t buy from an international seller for a normal contract unless it was an unbeatable deal. There is some risk involved in it.

Also be aware Aulani has HARPTA which is similar.

 

[IsDVCForMe?]

Yes I have. FIRPTA is the only thing that will be different. With that said I only moved forward because it was a rare contract (Aul sub) I wouldn’t buy from an international seller for a normal contract unless it was an unbeatable deal. There is some risk involved in it.

Also be aware Aulani has HARPTA which is similar.

What is the risk you speak of?

 

[IsDVCForMe?]

I’d skip international seller, especially far out closing date deadlines, unless the deal was way too good to pass up.

Google says:

Key Reasons to Avoid International Sellers:

• FIRPTA Compliance: A significant portion of the sale price (often 15%) is withheld by the IRS until taxes are cleared, adding complexity, potential delays, and the need for a tax ID (ITIN) for the seller.
• Longer Closing Times: Due to the extra legal and tax documentation required, the closing process can be extended, which might be frustrating for buyers.
• Potential for Complications: If the FIRPTA paperwork is not handled correctly, it can lead to issues with the IRS months after closing.
• Seller Communication/Signatures: Coordinating with international sellers, who may be in different time zones or have multiple owners, can sometimes cause delays in obtaining necessary signatures.

Potential Advantage (Exceptions):

• Easier ROFR Approval: Because the process is more complicated, some, including DVC Fan, note that Disney sometimes waives its Right of First Refusal more readily, as they may prefer to avoid the extra administrative burden of a foreign transaction.

The longer closing date wouldn’t be a problem. I’m more concerned about complications with the IRS.

 

[VGCgroupie]

What is the risk you speak of?

There is someone in this thread currently having some issues regarding the FIRPTA filing.
https://www.disboards.com/threads/firpta-filing.3978706/ I have seen several times that the IRS notifies the buyer that it wasn’t paid. It usually gets resolved but it’s a hassle and I don’t like getting a letter from the IRS even if it can be resolved.

 

[sndral]

When I bought from an international seller several years ago I was aware of FIRPTA & figured that if the worst happened I’d owe 15% to the IRS & have to harass the title company to cover it.
Fortunately my escrow/title co. was very experienced & they handled the IRS (don’t know whether they forwarded the 15% to the IRS at the outset or held it in escrow until the seller filed their paperwork w/ the IRS & paid whatever amount less than 15% they actually owed .)
That seller was prompt & we closed reasonably fast - they were in the UK, the price was decent & I’d been looking for a contract that size at that resort in my use year for a long time - so the remote possibility of a FIRPTA mix up was a risk I was willing to take, especially since I’d worked w/ the title agent on another contract & I knew they had a good reputation.

 

[IsDVCForMe?]

When I bought from an international seller several years ago I was aware of FIRPTA & figured that if the worst happened I’d owe 15% to the IRS & have to harass the title company to cover it.
Fortunately my escrow/title co. was very experienced & they handled the IRS (don’t know whether they forwarded the 15% to the IRS at the outset or held it in escrow until the seller filed their paperwork w/ the IRS & paid whatever amount less than 15% they actually owed .)
That seller was prompt & we closed reasonably fast - they were in the UK, the price was decent & I’d been looking for a contract that size at that resort in my use year for a long time - so the remote possibility of a FIRPTA mix up was a risk I was willing to take, especially since I’d worked w/ the title agent on another contract & I knew they had a good reputation.

What title company?

 

[Cyberc1978]

What title company?

Honestly don’t think you should worry about that. All title companies knows that if an international seller is part of the process then 15% needs to be withheld. But it never ever hurts to remind the broker and title company of that.

 

[cruisehopeful]

Has anyone bought resale from an international seller? What was the process like? Is there anything to be aware of?

I bought and it was fine, although it took a while for the sellers to do their paperwork. It still closed by the date expected to close. .

Like @VGCgroupie , I only bought because it was a unique contract. It was for VGC during a time when Disney was ROFRing many of those contracts, including one that I was going to buy. The broker said that Disney likely wouldn't want to deal with an international contract and they would waive ROFR. I wouldn't buy a different type of contract from an international seller, unless it's a screaming good deal because it's just one more thing that can go wrong with a resale.

 

[DVCyore]

I don’t get why the IRS issue has anything to do with the buyer? Surely that is the downside to selling as an international seller.

 

[disneylandtour]

Like others have said--especially as there is next to NO ROFR activity right now--it needs to be a stellar deal. I've had one transaction completely fall apart with an international seller as the seller had little idea what was needed to sell--and also little motivation in putting those things together.

 

[IsDVCForMe?]

Like others have said--especially as there is next to NO ROFR activity right now--it needs to be a stellar deal. I've had one transaction completely fall apart with an international seller as the seller had little idea what was needed to sell--and also little motivation in putting those things together.

Idk if we have a stellar deal but I think it’s pretty good from the data I’ve found. We’re not in a rush, so if it falls through I guess it falls through.

 

[VGCgroupie]

Did the broker tell you it was an international seller prior to offer accepted?

 

[IsDVCForMe?]

Did the broker tell you it was an international seller prior to offer accepted?

Yes

 

[VGCgroupie]

Yes

Okay good. Just asking since all brokers should be doing this.

 

[IsDVCForMe?]

Yes

That gives me confidence. Looked up the title company as well and they seem to have good reviews.

 

[sndral]

What title company?

It’s been so many years I don’t remember.

I don’t get why the IRS issue has anything to do with the buyer? Surely that is the downside to selling as an international seller.

It’s an issue for the buyer because the tax code says so. https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
It is the buyer’s responsibility to pay the tax to the IRS. It’s sort of like when your employer w/holds your income tax from your paycheck & sends that money to the IRS - the IRS makes you the buyer responsible for w/holding the real property tax owed from what you pay the seller & sending that money to the IRS rather than the seller, just like your employer sends your fed w/holding directly to the IRS.
There have been cases where the tax was not paid or not correctly calculated/paid & the IRS demanded that money from the buyer.
I’ve always assumed it was set up that way because it’s far easier for the IRS to get the money from a U.S. taxpayer v. a foreign non U.S. taxpayer .