Proceeds from the sale will be going to an intermediary

[Rich Hupper]

forgive my ignorance on the matter, I want to make sure nothing unexpected happens to my buyer.

He is about to sign a purchase and sale where the proceeds of the property will go to an intermediary. I was led to believe that when a 1031 exchange transaction took place the buyer and seller were trading properties of equal equity. If the equities were not equal a boot would be needed. 

My buyer does not have any property to trade all he has is a loan for the sale. What exactly is happening here?