List closing adjustments from the contract
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- List each proration the contract states, with the clause and the figure if the contract states one. Flag a foreign seller as a § 1445 question and stop. Do not compute a tax.
- What the lawyer must review
- You check each figure. Prorations follow the signed contract. 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 usually the withholding agent. Section 1445(b)(5) is the residence exemption where the amount realized does not exceed $300,000. A reduced 10 percent rate is stated where the amount realized does not exceed $1,000,000 and subsection (b)(5) does not apply. You read the conditions. Transfer taxes are state and local. No transfer-tax rate was opened. Formal Opinion 512 applies to the worksheet.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.