What is required from a purchaser at closing to facilitate the transaction process?

In real estate transactions, a W-9 form is crucial as it provides the necessary tax identification information required by the Internal Revenue Service (IRS). This form is particularly important during the closing process because it assures the parties involved that the data is accurate, which helps establish the identity of the purchaser for tax reporting purposes.

The W-9 form contains the purchaser's name, address, and taxpayer identification number (TIN), which can be either a Social Security number or an Employer Identification Number. Typically, the title company may request this form to ensure that they can report any payments made during the transaction correctly.

While other forms, such as a buyer’s affidavit, may also be involved in the closing process, they do not serve the same purpose concerning tax identification and reporting. The W-2 form pertains to wage and employment information, and a 1099 form is related to miscellaneous income, which are not directly relevant to the closing requirements for a real estate purchase. Thus, the W-9 form is essential in ensuring the transaction complies with IRS regulations regarding tax reporting.