1031 exchange question relating to buyer of property

NE · Member since 2022 · 16 posts · 4 votes

There is a property listed that states "buyer agrees to cooperate in a 1031 exchange". I am semi familiar with what a 1031 exchange is but could use some clarification as to what it means for me, the buyer?

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
I don’t think there is much for you. They may ASK you to expedite or slow down your purchase but they can only ask. They may be asking you not to tie up the property if you can’t or don’t want to close as the seller would be hosed.
They’re giving you more negotiating power. Probably it’s mostly to comply with the IRS.
The IRS requires that if any party to a transaction wishes to do a 1031 Exchange, all parties to the closing are made aware. The best place to do this is in the purchase and sale agreement.
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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
3y
@Dave Wyman, There is some special wording on the settlement statement that this is primarily referring to. It should not affect you whatsoever. The wording is only on the exchanger's side of the settlement statement. And it's formatting.
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Dave Wyman
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NE · Member since 2022 · 16 posts · 4 votes
3y

@Bill B.. Thanks for the info!
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Dave Wyman
OP
NE · Member since 2022 · 16 posts · 4 votes
3y
Quote from @Dave Foster:

@Dave Wyman, There is some special wording on the settlement statement that this is primarily referring to. It should not affect you whatsoever. The wording is only on the exchanger's side of the settlement statement. And it's formatting.

@Dave Foster Appreciate the info!
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