What exchange language do I need to include in the Contracts to Sell and Purchase property in an exchange?
It is required that the cooperating parties (Buyer of the property being relinquished; Seller of the Replacement Property) are aware they are part of your exchange. There is no specific language provided by the I.R.S. so keeping it simple is the best tactic. The “cooperation” is strictly acknowledging awareness of the exchange. Years ago, cooperation was much more involved and potentially risky for the non-exchanging participants. Today, there is no risk or liability for this roll, but notification is still required. Language to include in a Contract to SELL: Buyer agrees to cooperate in Seller’s I.R.C. Section 1031 Tax Deferred Exchange by acknowledging receipt of documents deemed necessary to the Exchange, at no cost, liability or time delay to Buyer. Language to include in a Contract to PURCHASE: Seller agrees to cooperate in Buyer’s I.R.C.Section 1031 Tax Deferred Exchange by acknowledging receipt of documents deemed necessary to the Exchange, at no cost, liability or time delay to
