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A 1031 residential property "exchange" involves an "exchange" of property. This can involve a three or even four party "exchange", but it is an exchange nevertheless.
As a landlord I know what a 1031 exchange is, but I'm trying to understand how a private buyer comes into the picture if they're not the ones "exchanging" anything.
Or it may be that buyer agrees to be flexible with closing date, since seller needs to find a comparable property and close on it in a certain time. They may need to delay closing on property being sold if another property hasnt been found/accepted offer.
The money for the sale goes to the attorney exchange account not to the selling owner. Maybe that scares novices into thinking they won’t get the deed.
There is paperwork to be signed for the 1031. It has no effect on the buyer, except that he has to sign the paperwork.
It's a tax thing that only affects the seller.
Now it can work the other way, too. The buyer might be doing a 1031 and the seller will have a couple of sheets of paper to sign at closing, with no effect on the sale.
With the 1031, the property sold goes into the name of the accommodator and then the accommodator signs the property over to the buyer. Or signs the cash over to the sellers. It's all done with the paperwork, which I remember as being one sheet of paper.
If you are looking to buy, you can ask your agent to explain what it means to you, as you are the buyer.
1031's are a pain in the butt. They close, but it takes all the planets lining up at the exact same time. That can be problematic as you are dealing with multiple parties and they all have to close within hours of each other.
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