W9 required for buyer with no loan involved?

[jp97]

Why would a title company request a W9 for a buyer when there is no loan involved? Is this standard practice? I'm not crazy about providing my ssn if it's not required.

 

[CaliforniaGirl09]

Why would a title company request a W9 for a buyer when there is no loan involved? Is this standard practice? I'm not crazy about providing my ssn if it's not required.

I have no idea. I just bought without a loan and didn’t have to provide. Bought a year ago also and didn’t provide. I’m with you in not giving anyone info they don’t need—especially ssn.

 

[Rylie Grite]

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[jp97]

It was a surprise to me when I received my closing documents. This is resale and the title company is Sterling Title. Curious if anyone else has ever been asked to fill out a W9 and/or provide ssn. I have emailed them back asking why they need it.

 

[wnielsen1]

Is the seller an international seller?

 

[supersnoop]

Spot on, @wnielsen1.

When the seller lives outside the USA, the buyer is responsible for withholding estimated capital gains taxes. The title company should take care of that for you. However, if something goes wrong, you’re on the hook and the government will come after you. That’s why they need your SSN.

 

[jp97]

The seller address is in the US so I assume they are not international.

 

[Best Aunt]

The seller address is in the US so I assume they are not international.

I wonder if the person doing the paperwork had a previous transaction with an international seller, didn't understand why the buyer's SSN was needed for that transaction, and thus doesn't realize that it would not need be needed for a transaction with a U.S. seller.

Anyway, I would call and ask.

 

[Matty B13]

We have bought 3 contracts in the last 2.5 years without loans and have never needed to provide SSN.

It's probably "standard operating procedure" for the closing company, but I would tell them you don't want to provide it to them.

Then again, with the Equifax security breach chances are your SSN number is already out in the internet.

 

[jp97]

I heard back from them: they ask so they can provide it to Disney. I can decline to send it, which I will. It's not that I mind to provide it to them specifically but just in general the less places your ssn is stored the better. Lesson learned: Always ask.

 

[disneynutz]

DVC uses your SSN s your security identifier. If they have your SSN on record, you can use it to access your account prior to receiving the mailed info from DVC. Also, isn't there a federal requirement that real estate transactions with SSN be reported to the government?

Bill