Cash from seller after close on 1031 Exchange

[Isaac S.]

Hi, i have a 400K 1031 - and i identified 3 properties. In making offers, i found that the properties although listed above 400k, will probably after due diligence come in at 350K. If i sign a contract at 400k (to satisfy the 1031 req), but say the seller pays me 50K at close, i'd imagine that's not allowed. 

If it's not allowed, is there anything else i could do in my scenario instead of just over paying? 

[Dave Foster]

@Isaac S., Rest easy.  you can purchase less than you sell.  And you can take cash out of the exchange.  Just like @Wayne Brooks said.  The IRS calls this "boot" and it would be taxable.  In your case, you'll purchase around $50K less so that 50K would be called boot or profit by the IRS.  And you'll pay tax on it.  But you'll shelter the remaining profit in the 1031.  I'm curious what your QI said?