What is the HARPTA Exemption Approval?

[MinnieMe2669]

I was told we have been waiting for weeks on this approval on behalf of the sellers, for our DVC resale contract. What is this? I don't see that in other posts.

 

[Lulubelle17]

Google says this: “HARPTA” stands for the Hawaii Real Property Tax Act, a State law. other residency) to have taxes withheld and remitted to the State within 20 days after the sale of a HIRPI closes. to withholding unless proof is provided to the Buyer in the form of a properly completed and approved withholding certificate.

So it sounds like it's some kind of tax exemption for Hawaii residents.

 

[Great3]

It's where the seller provides the necessary paperwork so you the buyer don't have to withhold proceeds of the sale to remit to Hawaii's gov't. It's normal part of the process for seller's that aren't resident of Hawaii if they so desire to go thru those steps. Most sellers don't, and just lose a portion of the sales proceeds to be paid as taxes on the sale, which they can claim back when establishing proper cost basis when filing Hawaii income taxes, which often doesn't happen.

Great3