REVERSE 1031 exchange w an escrow agreement - intermediary?

[Kyle Hood]

 Need help BP peeps!  Have a customer that has done a REVERSE 1031 exchange. They identified and purchased a property during last quarter of 2020. They have now went under contract with one of their rentals to complete the 1031.  However, it is an escrow agreement with buyer paying 30k down and annual payments of 25K over next four years.  Attorney handling Reverse 1031 exchange is questioning it with the second part being purchased by escrow agreement.

Does intermediary hold the money until it is paid off and deed exchanged or does intermediary pay the identified property with each installment?  Is it a simple pass through for the intermediary? 

Kyle Hood

Kyle Hood 

[Steve Morris]

Call up a QI, but kinda sounds like you're shaky.  Think the QI controls the up-leg until you sell the down-leg.

LESSON - BEFORE you do any transaction, get with someone that knows what they're doing like a QI

Then again, I see these <1% of the time, since most people need to sell something first to pay for the replacement.