Miami is a very international city with lots of foreign investors. If you are buying property here, you need to make sure to ask if the seller is a foreign investor or you could be on the hook for money owed to the IRS.
Under FIRPTA, Foreign Investment in Real Property Tax Act, there is a mandatory 10% withoholding of contract sales price at closing for all foreign sellers of real estate. It is the BUYER’S responsibility to make sure the 10% is withheld EVEN IF THEY ARE WORKING WITH AN ATTORNEY &/OR TITLE COMPANY. The withholdings must be remitted to the IRS within 20 days of sale along with a special tax return.
There are exceptions to the withholding that your Realtor, title company or attorney can walk you through, but you first must ask the question.