In California, if a seller is a foreign person or entity and sells real property located in California for a price of $100,000 or less, the buyer is required to withhold 3 1/3 percent of the gross sales price and remit it to the Franchise Tax Board (FTB). This is pursuant to California Revenue and Taxation Code Section 18662.
However, if the seller is a domestic corporation, partnership, limited liability company, or trust, or a foreign person or entity that has elected to be treated as a domestic corporation for California income tax purposes, no withholding is required on the sale of real property located in California for $100,000 or less.