Form NRW Now Mandatory for $1 Million Real Estate Sales

Pullman & Comley Real Estate Attorney Daryl M. Johnson authored the BusinessWest article, “Form NRW Now Mandatory For $1 Million Real Estate Sales,” which discusses Massachusetts’ requirement that settlement agents file Form NRW with the Department of Revenue for qualifying sales of Massachusetts real estate with a gross sales price of $1 million or more. The requirement applies regardless of whether the seller is a Massachusetts resident or whether tax withholding is ultimately required.

Daryl explains the distinction between the Form NRW filing requirement and the separate withholding requirement, as well as how the rules apply to individual sellers and entities such as LLCs, trusts and corporations. She emphasizes the importance of addressing seller residency and ownership information early in the transaction to avoid last-minute issues at closing. As Daryl notes, “The best practice is to identify the issue when the purchase and sale agreement is signed or when title work begins."

To read the full article, please visit the BusinessWest website.