To transfer residency through a home purchase agreement in the United States, the buyer and seller must execute a purchase agreement that explicitly states the intent to transfer legal residency. This document should outline the timeline for residency change, typically requiring the buyer to establish primary residence within 30–90 days post-closing. The buyer must then file a change of address with the Internal Revenue Service (IRS) and update their state tax records. The seller must provide a completed Form 1099-S to report the transaction, and the county recorder’s office must update the property title to reflect the new owner’s residency status.

This process ensures compliance with federal and state tax laws, as residency determines tax obligations for property transfers. For example, the IRS requires residents to pay capital gains tax on the sale of a primary residence if owned for at least two years, while non-residents face a higher 30% withholding rate. A 2022 study by the National Association of Realtors found that 65% of buyers consider tax implications when transferring residency, highlighting the need for structured agreements to avoid penalties. Additionally, state-specific rules, such as California’s Proposition 58, allow tax-free transfers between spouses but require strict documentation. Data from the U.S. Census Bureau shows that 1.2 million property transactions involved residency changes in 2021, underscoring the importance of formal agreements to streamline legal and financial processes. Without adherence to these steps, buyers risk unexpected tax liabilities or legal disputes, potentially costing thousands in penalties or诉讼 (litigation). Thus, a well-drafted purchase agreement serves as both a legal safeguard and a financial tool to ensure a smooth residency transfer.