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David Blaine
  • Investor
  • Arlington, TX
0
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CPA can refer 1031 client - how to compensate CPA?

David Blaine
  • Investor
  • Arlington, TX
Posted

Hi all, thanks for helping.

A chance discussion led to a contact with a CPA whose client may have 1031 proceeds in the near future, and I have acreage available, free and clear and not listed so no agents/brokers involved. My property is in Arkansas and so is CPA and client, and I have not met the client. The CPA and client have a long history together and the CPA states that my property will be of interest to his client. The CPA will be compensated for referral, just not sure of best method. I believe the cleanest solution is the CPA to first have his client sign an agreement for a fee paid to CPA. Their agreement can use any term they agree on instead of "referral", maybe financial strategery advisement or something. They can then have an attorney create a purchase contract with 1031 appropriate language, intermediary etc. 

I was previously a Realtor for several years in NV but not familiar with a transaction like this. The CPA is concerned that getting a fee/compensation could be construed as acting in the capacity of an agent/licensee.  If you are experienced with this situation or just know the answer, I would appreciate your help.

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