---
title: "List closing adjustments from the contract"
url: "https://ailawframework.com/practice/residential-conveyancing-and-property/prepare-settlement-adjustments-draft/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A9-B7-5-US"
practice_area: "Residential Conveyancing & Property"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# List closing adjustments from the contract

> 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.

Canonical page: https://ailawframework.com/practice/residential-conveyancing-and-property/prepare-settlement-adjustments-draft/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 | 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 | United States |
| Applies to | [Prepare settlement adjustments draft](https://ailawframework.com/practice/residential-conveyancing-and-property/prepare-settlement-adjustments-draft.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not calculate a state transfer tax. No rate was opened.
- Forms 8288 and 8288-A are named on the IRS page. Open the current instructions before filing.

## Sources

- [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)

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