When you’re doing a 1031 exchange, a very prudent practice is to put a cooperation clause in the contract for the sale of your relinquished property. This alerts everybody involved in the transaction (including the closing agent) that they need to be careful how they disburse the money because your funds need to go to your qualified intermediary. It also sets a record of your intent that you want to do a 1031 exchange so there is no question about your mindset as you begin the process. Finally, a cooperation clause can act to elicit the cooperation of the other parties to the purchase agreement to whom written notice must be given that you’re assigning your rights in the contract to your qualified intermediary. That way there isn’t any drama at the time of closing because expectations have been set.
Work With a Qualified Intermediary on Your 1031 Exchange
Work with a skilled qualified intermediary on your next 1031 exchange of real estate and start saving money by deferring your capital gains taxes. At CPEC1031, LLC our intermediaries have more than twenty years of experience at our backs. We have facilitated like-kind exchanges of all shapes and sizes and we can help you through the details of your next exchange. Contact us today at our Twin Cities 1031 exchange office to learn more about the process, our intermediaries, and whether your property qualifies for 1031 tax deferral.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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