Another idea … - Posted by Frank Chin
Posted by Frank Chin on May 23, 2007 at 18:30:58:
A non-simultaneous 1031 exchange is only one of several ways exchanges can be done. You didn’t say if the lawsuit is with the seller (sounds like you’re the buyer here), so how you can proceed depends on how cooperative the seller can be.
In any event, the seller’s cooperation is needed before any exchanges can be consummated.
My understanding of 1031 exchanges is there is a holding period involved. If you rather buy another property, with the seller’s cooperation, it still can be done.
There are also the “two way”, and “three way” simultaneous exchanges, besides the more well known 1031 non-simultaneous exchange.
In a “three way simultaneous exchange” (as opposed to non simultaneous), you first find the property you want to exchange into, you find a buyer for the seller’s property. You then close with the seller on propery one, you close with your seller on property two, and then you swap the two, with apropriate adjustments for the differences in values. This is done in one closing.
With this, you don’t run into the issues of holding periods that may snag your 1031 exchange.