While many of the responses are excellent, I believe that your question is related to why you are seeing 1031 exchange in the MLS listings.
Typically when a real estate agent indicates 1031 exchange in the listing it means that the seller is on the front end of a 1031 exchange. Whereby the seller needs the buyer to ‘cooperate’ in the exchange. There are no fees, expenses, or inherent risks for the buyer to cooperate in the exchange process. It does require the buyer(s) to sign some additional paperwork indicating that the seller is participating in a 1031 exchange and the property is actually being sold by the Qualified Intermediary (through assignment of the contract). Again there is no impact to the buyer in the terms and conditions of the real estate contract other than assignment by the seller to the Qualified Intermediary.
I saw your post above regarding the IRS Code not requiring a Qualified Intermediary (QI). Section 1031 of the Internal Revenue Code is fairly brief and dates back to 1921 and does not mention anything about a QI. It is Section 1.1031 of the the Treasury Regulations that were proposed in 1991 that spell out the requirements for a delayed 1031 exchange in much more detail that actually discussed the requirement for a QI.
hi guys and gals
I heard you have to own the property for a year and then I heard you only have to own it for the time you are going to 1031 it. what is the time frame for it?