1031, Condition of sale

[Fred Roven]

I have not been able to find a 1031 clause with sale of property as a condition of the purchase contract.  Buyer wants to use a 1031 exchange to purchase but wants contract to terminate if original sale does not occur with a reasonable amount of time.

[Steve Babiak]

The buyer should be using a Qualified Intermediary to handle his 1031 exchange, and the QI usually has the necessary paperwork. Ask the buyer how the QI wants this worded in the agreement; you can then either agree to it or ask for a change or say no.