What language for closing dates do I include in a real estate purchase agreement for a 1031 exchange?
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For your 1031 exchange, it's critical that the contract reflects the timing and procedural details needed to qualify for the tax deferral. The 1031 exchange language should outline the identification period (45 days) and the exchange period (180 days), as well as specify that the property you’re purchasing is part of the exchange. As long as your draft includes clear verbiage regarding these deadlines and the identification of the replacement property, it should suffice. However, keep in mind that coordinating your closing dates with the timelines involved in a 1031 exchange is essential to avoid any complications.
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I am doing a 1031 exchange. Selling a property with a closing date of 18 April. I am proposing a closing date of 26 April on the purchase of this property. Will my 1031 exchange verbiage in this draft suffice?
Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they'll be able to help with your 1031 exchange.
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I’m happy to review your documents! However, please note that if the document is more than 3 pages, there is an additional cost because of the time and effort required for a detailed analysis. Please specify the page count here, and if it’s more than 3 pages then you’ll get a personalized price quote through the website. Thank you!
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For your 1031 exchange, it's critical that the contract reflects the timing and procedural details needed to qualify for the tax deferral. The 1031 exchange language should outline the identification period (45 days) and the exchange period (180 days), as well as specify that the property you’re purchasing is part of the exchange. As long as your draft includes clear verbiage regarding these deadlines and the identification of the replacement property, it should suffice. However, keep in mind that coordinating your closing dates with the timelines involved in a 1031 exchange is essential to avoid any complications.
Question for you:
In order to give you a more thorough answer, can you clarify if you have a qualified intermediary involved in the exchange, or are you handling that aspect on your own?
