---
title: "Build the closing checklist, including prorations and foreign-seller withholding"
url: "https://ailawframework.com/practice/residential-conveyancing-and-property/build-the-pre-settlement-checklist-and-adjustment-worksheet/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A9-T1-R8-US"
practice_area: "Residential Conveyancing & Property"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Build the closing checklist, including prorations and foreign-seller withholding

> From the contract, list the proration items the contract names, the closing date, and whether any seller is marked as a foreign person. Compute no transfer tax. Prepare no deed.

Canonical page: https://ailawframework.com/practice/residential-conveyancing-and-property/build-the-pre-settlement-checklist-and-adjustment-worksheet/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Residential Conveyancing & Property](https://ailawframework.com/practice/residential-conveyancing-and-property.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the contract, list the proration items the contract names, the closing date, and whether any seller is marked as a foreign person. Compute no transfer tax. Prepare no deed. |
| What the lawyer must review | Prorations follow the signed contract and state custom. You check each figure. If a seller is a foreign person disposing of a United States real property interest, 26 U.S.C. § 1445(a) generally requires the transferee to withhold 15 percent of the amount realized, unless a statutory exception applies. The IRS withholding page states the same 15 percent rate for dispositions after 16 February 2016 and says the buyer is the withholding agent in most cases. A residence exception and a reduced rate are in § 1445. You decide whether one applies. Transfer taxes and recording fees are state and local. |
| Written for | United States |
| Applies to | [Build the pre-settlement checklist and adjustment worksheet](https://ailawframework.com/practice/residential-conveyancing-and-property/build-the-pre-settlement-checklist-and-adjustment-worksheet.md) |

## Checking plan

- What the AI does: From the contract, list the proration items the contract names, the closing date, and whether any seller is marked as a foreign person. Compute no transfer tax. Prepare no deed.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not use an Australian withholding clearance or a foreign-investment approval as a substitute for § 1445.
- Form 8288 and Form 8288-A are named on the IRS page. Open the current form instructions before filing.

## Sources

- [26 U.S.C. § 1445 (withholding on dispositions of United States real property interests)](https://www.law.cornell.edu/uscode/text/26/1445) (checked 2026-10-22)
- [IRS: FIRPTA withholding](https://www.irs.gov/individuals/international-taxpayers/firpta-withholding) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Purchase-contract due diligence checklist (United States)](https://ailawframework.com/precedents/residential-conveyancing-and-property/us-purchase-due-diligence-checklist.md) | Checklist | Yellow | A buyer-side list for a US purchase contract: title commitment, names and the legal description, pre-1978 lead disclosure, FIRPTA withholding, and loan disclosures if the purchase is financed. |
| [FIRPTA withholding file note (United States)](https://ailawframework.com/precedents/residential-conveyancing-and-property/us-firpta-withholding-file-note.md) | Memo | Yellow | An internal note of the IRS page's 15 percent withholding when a foreign person disposes of a U.S. real property interest, including joint owners, a grantor trust, and the residence discussion. |
| [Discharge of mortgage: registry forms and settlement guide (NSW 05DM, with Vic, Qld, WA and SA versions)](https://ailawframework.com/precedents/residential-conveyancing-and-property/form-discharge-of-mortgage.md) | Form | Yellow | Links to each registry's discharge of mortgage form and instructions, with a guide to who signs, partial discharges, the mortgagee's name on the register, and how the discharge is handled at an… |
| [Title commitment and closing-document check (United States)](https://ailawframework.com/precedents/residential-conveyancing-and-property/us-title-and-closing-document-check.md) | Checklist | Yellow | A closing check that the deed, any mortgage, and the title commitment use the same parties and the same legal description as the purchase contract, with the FIRPTA figure carried from the file note. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*