Dealing with 1031 Real Estate Exchange
We are currently working with a seller that previously purchased his house through a 1031, by exchanging a piece of property plus 8k. We understand that he must wait a full year before selling. That date expires April 4th. What we are not sure of is, are there any other rules or guidlines that we need to follow to ensure that the purchase is complete? Also is there particular paperwork that we needs to tended to? Thank you for your replies, they are greatly appreciated!
Brett
If the seller's property is participating in another 1031 exchange, then you may be asked to sign an exchange escrow agreement, and there may be a provision in your purchase and sale agreement that stipulates that you will cooperate with all parties to the exchange. In all other respects, the purchase of this property should proceed just like the purchase of any other property.
Otherwise, if the seller is just selling this property outright, then the fact that the seller had previously used a 1031 exchange to acquire this property should be transparent to you.
Dave thank you very much. Brett McCoy