The short answer
Only a handful of states make an exchanging seller apply for withholding relief before closing, and those deadlines are measured from the closing date backward. Maryland's Form MW506AE and West Virginia's Form NRAE must be received at least 21 days before closing; Maine asks for at least 5 business days on Form REW-5 and will not grant relief after the sale closes; New Jersey's buyer must file the bulk sale notice 10 business days ahead for income-producing property. Most other withholding states, including California, Georgia, Hawaii and New Jersey's GIT/REP-3, accept the exchange certification at the closing table. Which states withhold at all, and at what rate, is covered on which states withhold at closing.
At a glance
| 21 days, received | Maryland Form MW506AE and West Virginia Form NRAE |
|---|---|
| 5 business days | Maine Form REW-5, filed on the Maine Tax Portal; no exemption once the sale closes |
| 10 business days | New Jersey Form C-9600 bulk sale notice, filed by the buyer for income-producing property |
| 10 working days | Hawaii Form N-288B, used only for no-gain or insufficient-proceeds cases, not for exchanges |
| No fixed lead time | Vermont Commissioner's Certificate through myVTax, which must exist before the buyer files |
| At the table | California Form 593, Georgia IT-AFF3, Hawaii N-289, New Jersey GIT/REP-3 |
| Federal | A FIRPTA withholding certificate application filed by the transfer date defers payment of the amount withheld |
Maryland and West Virginia need the exchange application in the agency's hands 21 days before closing
Maryland's Form MW506AE says the form and required documents must be received no later than 21 days before the closing date, and an application with no closing date will not be processed. For an exchange, the required documents include a letter from the qualified intermediary stating whether there will be boot and how much. Details are on the Maryland MW506AE page.
West Virginia's TSD-389, revised April 2026, sets the same rule for Form NRAE, the application for a certificate of full or partial exemption: received by the Tax Division no later than 21 days before closing. The exchange reason and the rest of the form are on the West Virginia NRAE page.
In both states the deadline is a receipt date, not a mailing date. Count back 21 calendar days from the scheduled closing and allow mail time before that. If the closing moves earlier, the certificate may not arrive and the closer must withhold the full amount.
Maine and Vermont want the certificate before closing but publish shorter or no fixed windows
Maine Revenue Services' withholding FAQ says Form REW-5 should be filed on the Maine Tax Portal as soon as buyer and seller reach agreement, that sellers should allow at least 5 business days for a response, and that a seller becomes ineligible for an exemption or reduction after the sale has closed. Missing documents lengthen the response. The exchange contract requirement is covered on the Maine REW-5 page.
Vermont's real estate withholding page says the buyer files Form RW-171 with payment within 30 days of the transfer unless the seller has obtained a Commissioner's Certificate. No lead time is published, so request it once the contract is signed; see the Vermont RW-171 page.
Hawaii's Form N-288B, which carries a 10-working-day deadline in Tax Facts 2010-1, is not an exchange form. The exchange route is Form N-289, signed and handed to the buyer, explained on the Hawaii HARPTA page.
New Jersey's bulk sale notice and a federal FIRPTA application are the other pre-closing clocks
New Jersey's bulk sale FAQ requires the buyer of income-producing real estate to deliver Form C-9600 and the executed contract so the Division receives them at least 10 business days before closing. Business days exclude weekends and holidays, delivery must be registered, certified or overnight mail, and there is no expedited service. One- and two-family homes owned by individuals, estates or trusts are exempt. See the New Jersey GIT/REP and bulk sale page.
Foreign sellers have a federal clock as well. Under Reg. section 1.1445-1(c)(2), if an application for a FIRPTA withholding certificate is submitted on or before the transfer date, the buyer still withholds but need not pay the amount over until the 20th day after the IRS's final determination. The process is on the FIRPTA Form 8288-B page.
Most withholding states take the exchange certification at the table
California's Form 593 instructions require an exempt seller's form to reach the escrow person or intermediary before escrow closes; the exchange is claimed on line 10. Georgia's Rule 560-7-8-.35 imposes no filing requirement in exempt transactions, and Form IT-AFF3 is simply given to the buyer. Hawaii's N-289 and New Jersey's GIT/REP-3 also go to the buyer or settlement agent at closing.
Recording-state forms such as New York's IT-2663 and Delaware's REW-EST travel with the deed, so they too need no lead time, only accuracy. Links to each state's page are on which states withhold at closing.
A closer's countdown for an exchange with a withholding state
The order below assumes the exchange agreement with the intermediary is signed before the relinquished property closes, which every pre-closing application needs. Dates run from the scheduled closing.
- Contract signed: identify the seller's residence and entity type; confirm whether the state withholds.
- Day minus 30 or earlier: Maryland or West Virginia application with intermediary letter and basis records, timed to arrive by day minus 21.
- Day minus 14 or earlier: New Jersey C-9600 from the buyer's attorney if the property is income-producing.
- Day minus 7 or earlier: Maine REW-5 on the portal with the exchange contract; Vermont certificate requested.
- Closing: affidavit-state forms signed and delivered; any certificate amount entered on the state's remittance form.
- After closing: watch for boot and failed-exchange events, which some states withhold on later.
Related questions
Which states need the 1031 exemption filed before closing?
Maryland and West Virginia, with 21-day receipt deadlines, and Maine, which asks for at least 5 business days and refuses relief after closing. Vermont's certificate must also exist before the buyer files, though no lead time is published.
Is Maine's deadline 14 days?
The Maine Revenue Services FAQ says to allow at least 5 business days for a REW-5 response and to file as soon as the parties reach agreement. The firm rule is that no exemption issues after closing.
What happens if we miss the 21-day window in Maryland?
The closer withholds the full amount at recording, and you recover the excess through a tentative refund or your Maryland return. Since 2025, sales of $1,500,000 or more must wait for the return.
Does the New Jersey bulk sale notice apply to my rental duplex?
Not if it is a one- or two-family residence owned by individuals, estates or trusts. Larger rental buildings and property held in an LLC are subject to the notice.
Can the qualified intermediary file these applications for me?
Maryland requires a signed letter from the intermediary, but the application is the seller's. Each state form names who signs, so assign each one to a person when the contract is signed.
Sources
Checked against these publications on September 30, 2026. Rules and figures change; confirm the current version with your CPA or attorney before you act. This page is general information, not tax or legal advice.
- Comptroller of Maryland, Form MW506AE (2026) with instructions
- West Virginia Tax Division, TSD-389, Withholding Requirements for Sales of Real Property by Nonresidents (Rev. April 2026)
- Maine Revenue Services, Real Estate Withholding FAQ
- Vermont Department of Taxes, Real Estate Withholding
- Hawaii Department of Taxation, Tax Facts 2010-1, Understanding HARPTA (revised April 2025)
- New Jersey Division of Taxation, Bulk Sales Frequently Asked Questions
- California Franchise Tax Board, 2026 Instructions for Form 593
- Georgia Rule 560-7-8-.35
- 26 CFR 1.1445-1, Withholding on dispositions of U.S. real property interests by foreign persons