selling 1031 and not purchasing another-who should proceeds go to

1031 Exchanges
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selling 1031 and not purchasing another-who should proceeds go to

Karen Viau
Member since 2018 · 2 posts · 0 votes

Sold a building, bought two properties - both have their own title, now want to sell one and do not want to reinvest the money - who do i tell the purchaser to make the check out to? husband and self - who are the members of the 1031 llc? or to the llc itself??

Help sale is happening soon!

Thanks

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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y

Sales proceeds get paid to the record owner... if the LLC is on title, the LLC gets the $.

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    Sales proceeds get paid to the record owner... if the LLC is on title, the LLC gets the $.

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  • Karen Viau
    OP
    Member since 2018 · 2 posts · 0 votes
    8y

    Now have decided to just put the funds from the sale of the 1031 into escrow while deciding on which future properties to purchase. who does the check get made out to in this case?

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    Same answer, owner on title is the owner.  The fact that you bought these properties using a 1031 is irrelevant to this issue, by the way.  I assume you are using a title co. or attorney.....funds(no checks) are transferred to the title co./attorney from the buyer....the title co/atty issues funds to the “owner of record”.

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Karen Viau, if you are wanting to do a 1031 exchange on the sale then you must use a Qualified intermediary and the proceeds must go into your exchange account with them.   You cannot touch the proceed and you cannot control the proceeds.  The 1031 is not a do it yourself process.  so the intermediary has to direct where the proceeds go.

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