Are the other 50% owner(s) in agreement in selling the property or buying out your parents share?
I have a solid real estate attorney referral for you. Is the other 50 owner in agreement on this sale?
I have referrals for Southern California or San Diego if you're interested. Although, if you're looking for something according to federal law, a Colorado attorney cold probably help you too. What about the other 50% of the property? Are they thinking of selling, reinvesting, gifting...? Probably want to think about your parents' basis in the property of know what kind of gain they might be looking at.
*This post does not create an attorney-client or CPA-client relationship. Readers are advised to seek professional advice.
@Bryan Cork , this would need to be a discussion with both a real estate attorney and a CPA to navigate the multiple issues that I see here, such as the partnership/corporate structure of the holding entity, potential recalcitrant owner, capital gains taxes vs. 1031 exchange, in-place leases, etc. Also, I would suggest that you help your parents reconsider the thought that investment properties must be nearby where the investor lives. If the property is in a good and growing area of Corona (which certainly has good and bad areas) and if they are seeing a positive cash flow on the property, it may make more sense to just collect rental checks and see the property continue to appreciate rather than moving the investment elsewhere.
Hey @Bryan Cork
As others have suggested, it would definitely be wise to consult a CPA in addition to the attorney.
Partnerships complicate the feasibility of an exchange quite a bit (can’t exchange an interest in a partnership, but can exchange a property owned by partners), so you will want to make sure you cross your T’s and dot your i’s to avoid a colossal tax headache arising later.
@Bryan Cork , if it's an issue with family members who are also business partners, then you will certainly need to involve a real estate attorney. I am a real estate attorney and willing to have a preliminary discussion with you or your in-laws if you want to PM me.