Real Estate Closing Checklist: IRS Abatement and NAR Settlement Tips for Agents

On June 17, 2025, we hosted a bi-weekly webinar tailored for real estate agents, diving into critical topics to ensure smooth closings and empower agents with actionable insights. Co-hosted by myself, Ryan Poole, a 20-year veteran real estate agent and founder of RealTrade and James Brown, an attorney and founder of New Path Title, the webinar covered a listing checklist, IRS first-time abatement opportunities, and updates on the NAR settlement. Here’s a concise recap of the key points to help agents excel in today’s market.

The Power of Preparation: Listing Checklist for Smooth Closings

A smooth closing begins with thorough preparation. James Brown shared a practical listing checklist to minimize friction and set expectations early:

• Do Your Homework: Conduct a market study, prepare a marketing plan, and highlight your successes to bolster your credibility during listing appointments.

• Get a Title Advance: Use a Title Advance to understand the property’s equity, liens, and ownership details. This helps you assess the seller’s motivations and identify potential issues like judgments or code compliance problems.

• Review the Deed: Confirm who needs to sign the listing agreement and closing documents. Check how long the seller has been in title to uncover opportunities like seller financing, which can defer capital gains taxes.

• Verify Permits and Improvements: Ask if renovations (e.g., new windows, roofs, or solar panels) were done with permits. Unpermitted work can derail closings, so check county records early.

• Understand Land Use and Zoning: Ensure the property’s land use matches its listing (e.g., don’t list a single-family home as multifamily). This prevents lender issues and buyer disappointment.

• Address Entity Ownership: If the seller is an LLC, corporation, or trust, request trust documents or entity details upfront to avoid delays.

• Condo-Specific Checks: For condominiums, confirm milestone inspections and Structural Integrity Reserve Studies (SIRS) are complete, as these are critical for lendability.

• FIRPTA and Foreign Sellers: If the seller is a foreign national, discuss FIRPTA (Foreign Investment in Real Property Tax Act) requirements early to avoid surprises at closing.

• Flood Disclosures: Don’t overlook flood disclosure requirements, which are mandatory in all transactions.

By addressing these items before or during the listing appointment, agents can prevent last-minute hurdles and demonstrate their expertise. For example, James shared a case where a title advance revealed equity issues early, allowing the agent to resolve them before going under contract, resulting in a seamless closing.

IRS First-Time Abatement: A Game-Changer for Clients

One of the webinar’s standout topics was the IRS First-Time Abatement program, a little-known opportunity that can help clients with tax issues. James shared a personal story of an LLC he manages that faced a $10,000 IRS penalty due to a tax ID mix-up. By applying for first-time abatement, the penalty was fully relieved within two months, restoring the entity’s ability to secure loans and buy property.

Key Eligibility Criteria:

• The client has a history of good tax compliance (no penalties on the same filing for the past three years).
• They’ve never applied for an abatement before.
• The penalty isn’t due to an Electronic Federal Tax Payment failure.

How It Works:

• Clients can request abatement using Form 843 or through a third party (e.g., a CPA or bookkeeper) with a Form 2848 power of attorney. Agents should not file on behalf of clients.

• Relief can sometimes be granted over the phone, though James recommends submitting the form for clarity.

• There’s no known maximum abatement amount—James has seen relief for penalties exceeding $100,000.

This program is a powerful marketing tool. Agents can position themselves as authorities by sharing this information via social media or email campaigns (e.g., “Does your client owe the IRS? They may qualify for penalty relief!”). With many Americans owing IRS penalties, this message can spark conversations and generate leads.

Market Insights: Opportunities in a Shifting Landscape

Ryan and James provided a market update, highlighting both challenges and opportunities:

• Inventory Surge: Nationwide, active inventory hit 950,000 homes in October 2024, 30% higher than the previous year, and surpassed 1 million by May 2025. Summer months typically add 30,000 homes monthly.

• Consumer Sentiment: Despite bruised sentiment, Fannie Mae forecasts a gradual rate decline to near 6% by year-end. Softening job reports may prompt the Fed to lower rates, encouraging buyers.

• Pent-Up Demand: Significant money is waiting on the sidelines, with institutional investors already buying in anticipation of increased demand.

• South Florida Trends:

  • Migration from the Northeast continues, with a 26% year-over-year increase in all-cash buyers.

  • Older buyers are purchasing more second and third homes, often nicer ones, rather than downsizing.

  • Millennials and Gen Z are entering prime home-buying years, with 90% viewing homeownership as key to wealth-building and 75% believing it’s attainable.

These trends point to a strong fall market. Agents should encourage buyers to act now, leveraging high inventory, and urge sellers to list before shadow inventory (sellers waiting to list) floods the market.

NAR Settlement and Industry Challenges

While the webinar touched on the NAR settlement, James emphasized the importance of doubling down on skills despite market challenges. The settlement has introduced uncertainties, but agents who focus on preparation, education, and value-driven service will thrive. I highlighted RealTrade, a free platform for agents to generate leads from listings and connect with service providers like title companies and lenders, as a tool to stay competitive.

Actionable Marketing Tips

• Leverage IRS Abatement: Share the IRS abatement opportunity on social media to attract clients with tax issues.

• Highlight Market Opportunities: Send messages like, “Now’s the time to buy with record-high inventory!” or “List now before more sellers enter the market.”

• Use Title Advance: Present title advances at listing appointments to showcase your expertise and uncover potential issues early.

Final Thoughts

The real estate market is challenging but ripe with opportunity. By using tools like Title Advance, understanding programs like IRS first-time abatement, and staying proactive with listing preparation, agents can set themselves apart and ensure smooth closings. As both James and I have emphasized, now is the time to double down on your skills, connect with clients, and seize the moment in a dynamic market.

Ready To Elevate Your Real Estate Game?

Visit RealTrade, the social marketplace where buyers and sellers connect directly with agents—no lead fees, just results.

Stay sharp, and let’s close more deals together!

Resources to Bookmark

• New Path Title: go under “Realtor Resources” for the webinar recording and outline.
• Title Advance Link: for fast, no-cost reports that help realtors win listings and close faster. These reports include critical details on mortgages, liens, encumbrances, open permits, code violations, taxes, and utilities—everything needed to streamline your sale!
• RealTrade YouTube: Catch past sessions and links to tools like Title Advance and our closing cost calculator.
  
  

   

  Got questions? Text James at New Path Title’s 24/7 attorney support (561) 307-0885 or message me (Ryan Poole) on RealTrade. Here’s to your next big win!