1031 buyer (rentals, investment house, new construction, investment)

[leastprime]

Originally Posted by bobbyanylitics

That's fine but I have a contract with a closing date on it. It is irrelevant to me on how they make that date.

Exactly.
The buyer, depending on tax exposure, will try hard to make the 1031 happen, and dependent on him selling his investment property.
You, seller, don't really care whether 1031 or otherwise. May be a slight advantage to you in a 1031 purchase.
I'd be looking at your options (where to live, profits/losses and any tax ramifications) if this successfully closes.
YMMV

[bobbyanylitics]

Originally Posted by leastprime

Exactly.
The buyer, depending on tax exposure, will try hard to make the 1031 happen, and dependent on him selling his investment property.
You, seller, don't really care whether 1031 or otherwise. May be a slight advantage to you in a 1031 purchase.
I'd be looking at your options (where to live, profits/losses and any tax ramifications) if this successfully closes.
YMMV

Where to live is not an issue. Also, with all the repairs and vendor charges to appease the agents, not the buyer, I believe, I'll be lucky to break even. I tried to do a net sale calculation from looking at the closing statement when I bought, seeing what was charged to the seller, figure the previous year payed taxes i will owe. It's going to be close. I can't think of any other charges, lawyer is 450. there must be more, there always is.

My agent still hasn't told the buyer that I won't extend again, because she's so worried about the tree and turning a 27 year old house into a new one. But she knows. So I hope they don't find out until the day before the scheduled closing.

[oregonwoodsmoke]

Originally Posted by bobbyanylitics

......., they are asking for 6 more days to sell their house. I can say no and keep the 50k that went hard, according to my lawyer. r.

Maybe. Maybe not. They can cancel the purchase if you won't extend and then you probably get to keep the earnest money. Or, if you won't extend, all they have to do is to remove the contingency that the purchase is contingent upon them selling their house. If they sign off on the contingency, you are still in escrow and do not get to cancel the sale and keep the earnest money. Not yet.

[bobbyanylitics]

Originally Posted by oregonwoodsmoke

Maybe. Maybe not. They can cancel the purchase if you won't extend and then you probably get to keep the earnest money. Or, if you won't extend, all they have to do is to remove the contingency that the purchase is contingent upon them selling their house. If they sign off on the contingency, you are still in escrow and do not get to cancel the sale and keep the earnest money. Not yet.

Whether or not they fulfill or remove the contingency has no bearing on the closing date of the sales contract. Or does it? I have no intention or right to cancel the sales contract before 3/1

I gave them one extension from 2/15 to 3/1 because they didn't sell their home in time. I had no obligation to.

I gave them a credit on a tree removal. I had no obligation to.

They asked verbally for 6 more days and now they are telling my council they need till 4/1.
I am not a realtor or lawyer, that's why I am discussing it here. To get opinions and past experiences of people who do this professionally.
As far as I can tell, if funds owed are not received by the time my financial institution closes on 3/1, the sales contract will cease to exist, and we all will move on. My agents objective should change from closing to showing. As a matter of fact, I was always told "show it till the check clears". We have had no showings since the initial deposit was entered into escrow.
And since my sellers obligations effectively turned 27 year old house into a new house, nothing but asking will be accepted.

[bobbyanylitics]

I also have another question about the 1031 exchange, If the taxes on the gain they would save by fulfilling this contract, are more than the deposit that went hard, and they can't fulfill the contract, wouldn't it make sense to find another property or attempt to reenter a contract with me? Their listing is pending so they may be committed to sell their investment property.

[leastprime]

Yes and no.
If they are Not able to consummate the sale of their property, The contingency for them selling their property by the Feb 15 (?), could terminate the contract with you.
A more direct answer is how committed are they to sell their property at the current contract. How committed are they to your property? The 1031 clock starts when their property is sold.

a summary of 1031: https://www.investopedia.com/financi...exchanges.aspx

Consult your advisors

[bobbyanylitics]

Their commitment to me is only the initial deposit that is non refundable, and has been "hard" since way before Christmas. However they have until 3/1 to close. If they find out they can't close on their property before that date, they should cancel my contract and find another home to close on before their "time clock" expires?

[Oldhag1]

I am truly baffled, were there no contingencies in their contract about either financing or selling their property? We had a contract fall through because something happened with the financing and didn’t get to keep the deposit. What does a deposit turning “hard” mean?

[MikeJaquish]

Originally Posted by Oldhag1

I am truly baffled, were there no contingencies in their contract about either financing or selling their property? We had a contract fall through because something happened with the financing and didn’t get to keep the deposit. What does a deposit turning “hard” mean?

Non-refundable.
It's a bet they will close.

[oregonwoodsmoke]

They have 45 days after their property sells to declare which property they will buy as the replacement. The clock doesn't start until the property they are selling closes escrow.