I have never had to withhold a deposit except for one time.

If you incorporate an entity in the U.S.A. which is directly owned by the five of you, then you may still control when earnings are repatriated to Canada, but there will be a larger withholding by the IRS and, once received, the dividend will be taxed at your marginal tax rate (which may, or may not, be better than having it taxed at the corporate tax rate if you were using a CCPC.Once again:  The first thing your should do is find yourselves both an accountant and attorney with cross-border real estate experience, shell out a few hundred dollars and get an ownership structure which meets your present needs, but is capable of being evolved to meet your future requirements with a minimum tax burden.

I withhold signing to sell saying I want my lawyer to look over the contract.  

But, since he's already been paid, I can't do what I should have done . . . withhold payment.

I guess suggesting a blog about ethics for investors is like discussing withholding tax in a house of ill repute!

Usually, though, these include the right for you to withhold any part of the deposit and itemize to the current leaseholder for costs to relist/re-rent the unit and the length of time it takes to find a new, qualified applicant.  

French, what about that the quarterly taxes that are due from members to the irs for withholding?

Yeah unless they signed some form of contract that stated any penalty for bailing, then you are pretty much stuck.Could you withhold some and roll the dice?

@Jack B.Everyone's tax situation is different and for that reason - the title company will not withhold federal/state income taxes on your behalf and remit them to the federal government/state.One thing you may want to look at is if you are required to make estimated tax payments to avoid having to pay a penalty.Your accountant will be able to answer this question.

Otherwise, they are an employee and you should have worker's comp for them; withhold payroll deductions, etc.