Deleted
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Post by Deleted on Jan 4, 2015 21:23:40 GMT -5
Public Remarks: SALE WILL BE SUBJECT TO A 1031 EXCHANGE
What does this mean, practically speaking?
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msventoux
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Post by msventoux on Jan 4, 2015 22:15:22 GMT -5
I haven't dealt with like-kind exchanges very much at all. But I don't know if it would affect the buyer in the transaction that much, other than they have to give the seller time to identify a replacement property...45 days to identify it and 180 days to close on it, I think.
So it could take the buyer considerably longer than a regular transaction to get to the final closing. And the transaction runs through an intermediary so that the seller doesn't received the funds directly. I don't think that the intention is that the buyer brings a suitable replacement property to the table, but that could be a possibility I suppose.
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Bonny
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Post by Bonny on Jan 5, 2015 17:20:26 GMT -5
Public Remarks: SALE WILL BE SUBJECT TO A 1031 EXCHANGE What does this mean, practically speaking? I'd find out if they have identified a suitable property yet. They have 45 days to identify three properties and then 180 days to close on one of them. That doesn't mean you have to wait that long for closing but the 45 is a possibility.
In general it means that you'll cooperate with extra paperwork. Just make sure that there's some language in there that the seller is responsible for any and all costs associated with the exchange.
FWIW we did a transaction about 10 years ago where the buyer was exchanging into our property and we in turn were exchanging into another. Find out how many parties are part of the chain. I remember one deal that my mom did where there were a dozen properties involved!
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