---
title: "Report status to the client at offer, contract, and closing"
url: "https://ailawframework.com/practice/residential-conveyancing-and-property/draft-the-client-report-offer-advice-pre-contract-and-post-settlement/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A9-T1-R10-US"
practice_area: "Residential Conveyancing & Property"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Report status to the client at offer, contract, and closing

> From the lawyer's notes, list the stage, the open items, and the dates. Flag a foreign seller as a § 1445 question and stop. Do not state whether withholding is due.

Canonical page: https://ailawframework.com/practice/residential-conveyancing-and-property/draft-the-client-report-offer-advice-pre-contract-and-post-settlement/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 lawyer's notes, list the stage, the open items, and the dates. Flag a foreign seller as a § 1445 question and stop. Do not state whether withholding is due. |
| What the lawyer must review | Model Rule 1.4(a)(3) requires you to keep the client reasonably informed, and Rule 1.4(b) requires an explanation sufficient for an informed decision. You edit every sentence that states a legal conclusion. If the seller is a foreign person disposing of a United States real property interest, § 1445(a) generally requires the transferee to withhold 15 percent of the amount realized. The IRS page states that rate for dispositions after 16 February 2016 and says the buyer is the withholding agent in most cases. Section 1445(b)(5) is an exemption for a residence where the amount realized does not exceed $300,000. A reduced 10 percent rate is stated for a residence where the amount realized does not exceed $1,000,000 and subsection (b)(5) does not apply. You read the conditions before applying either. Formal Opinion 512 applies to the draft. |
| Written for | United States |
| Applies to | [Draft the client report: offer advice, pre-contract and post-settlement](https://ailawframework.com/practice/residential-conveyancing-and-property/draft-the-client-report-offer-advice-pre-contract-and-post-settlement.md) |

## Checking plan

- What the AI does: From the lawyer's notes, list the stage, the open items, and the dates. Flag a foreign seller as a § 1445 question and stop. Do not state whether withholding is due.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Transfer taxes and recording fees are state and local. No state transfer-tax statute was opened.
- Forms 8288 and 8288-A are named on the IRS page. Open the current instructions before filing.

## Sources

- [ABA Model Rule 1.4, Communications](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_4_communications/) (checked 2026-10-22)
- [26 U.S.C. § 1445 (FIRPTA withholding)](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 |
| --- | --- | --- | --- |
| [Buyer issues report on a purchase contract (United States)](https://ailawframework.com/precedents/residential-conveyancing-and-property/us-buyer-issues-report.md) | Letter | Yellow | A letter that reports to the buyer what the due-diligence checklist found on title, lead-based paint, FIRPTA withholding, and loan disclosures, in the lawyer's own conclusions. |

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.*