1031 Exchange Cooperation Clause
Due to changes in 1031 exchange over the years, it is no longer a requirement to disclose that a property is included in a 1031 exchange. However, if there is a desire to include an "Exchange A provision in a purchase and sale agreement that states that either the buyer or seller intends to conduct a 1031 exchange and reserves the right to assign its interest in the purchase and sale agreement to a qualified intermediary. The clause also typically elicits the other parties to assist in signing applicable 1031 documents. Cooperation Clause " in a contract, the language below will suffice for the intended purpose.
The Parties acknowledge that either The purchaser of the taxpayer's relinquished property. Buyer or Seller may engage in a Section 1031 tax deferred exchange or a reverse type exchange as contemplated by Rev. Proc. 2000-37. It is understood that such engagement by a party will not delay the closing, nor impose any additional expense or liability to the other Party. Notwithstanding any other provision in the contract or agreement between the Parties, to the extent necessary for effectuating such exchange transaction, the exchanging party’s rights and obligations under the contract or agreement may be assigned to Accruit, LLC or any of its subsidiaries to facilitate the exchange transaction.
