This document is required for every Real Estate transaction. The purpose of this document is to prove that the seller is a U.S. citizen, and that he/she has a social security number or corporate I.D. number to prove it. It is protect all parties
Either that or the QS form (Qualified Substitute)which can be drawn up thru escrow or here in CA there is a QS Form that agents have access to thru The California Association of Realtors.One or the other is required of every Seller.
Yes, actually it work for your protection as well. By doing this you're making statement that you're US citizen or permanent resident and an exempt from withholding, if you are? Also it protects the escrow officer/company, because they are the one who does this withholdings.