However, it is important that the contracts for the sale and sale of both assets be refundable. To structure a typical exchange transaction, 1031 Exchange Place must be assigned as the seller of the abandoned property and also as a buyer of the replacement property. A exchangeor should check the contract to confirm that they are not prohibited from assigning their position as a „seller“ or „buyer“ to a qualified intermediary. If a typical 1031 exchange is initiated, qualified intermediation is displayed on the settlement statement as a seller instead of the Exchangors/seller. „The buyer is aware of this and recognizes that the seller intends to make a deferred exchange in accordance with Section 1031 of the IRC. The seller asks the buyer to participate and agrees to compensate the buyer for any claims, expenses, debts or delays resulting from such an exchange. The buyer accepts the assignment of this contract by the seller. The purchaser acknowledges that the seller intends to conduct a deferred tax exchange transaction pursuant to Section 1031 of the Internal Revenue Act and Section 1.1031 of the Treasury Regulations, and that the seller`s rights, securities and interest (but no commitments) in this [insert the name of the purchase and sale contract, either the sales contract or fiduciary instructions] will be assigned to Exeter 1031 Exchange Services, LLC, as the seller`s qualified intermediary for the purpose of concluding the seller`s 1031 Exchange transaction. EXCHANGE DOCUMENTS PREPARED: Send a copy of the sales contract to Legal 1031. Legal 1031 will prepare the 1031 exchange documents necessary for the sale of the sold property. If the proceeds of the sale are not used to purchase a replacement property, this amount must be identified in the exchange documents and this amount may be taxable. EXECUTE EXCHANGE DOCUMENTS: The exchanger must sign all foreign exchange documents and the seller of the sold property must sign the transfer agreement. Executed documents must be sent to Legal 1031 before they are completed.
All documents must be completed by Exchanger and the seller before we can process a request for payment of money from the replacement property. CONTACT LEGAL 1031: The qualified intermediary must be involved before the sale of the abandoned property. Contact Legal 1031 Exchange Services, Inc. (877) 701-1031 or „protected e-mail.“ PROPERTY REPLACEMENT IDENTIFICATION: Exchanger has 45 days from the sale to identify the replacement property, and 180 days between the sale and the conclusion of the identified property. The identification of the replacement real estate documentation must be completed by Exchanger and forwarded to Legal 1031 until the 45th day following the sale of the first abandoned property. SALE CONTRACT: To enter into a „transfer“ contract for the sale of abandoned goods with 1031 language of exchange cooperation to Although many exchangers generally include language in their purchase and sale contract to establish their intention to trade, this is not required by the Internal Income Code. Many exchangers and real estate agents add interchangeable language to the contract for several reasons: the seller agrees to cooperate with the buyer and exeter Asset Services Corporation at no additional cost or liability to the seller, by executing the documents and documents necessary to complete the buyer`s Reverse 1031 Exchange transaction, including the sale, confirmation, notification and instruction to transfer the property to the new limited liability company.