BP Nation: Please help with sale of 50% ownership in duplex!

[Baha M.]

Hey guys, im in process of selling a 50% interest in my duplex to a business partner who will be paying me via funds from a 1031 exchange. We will be tenants in common/joint tenants. He wants me to sign a grant deed and a preliminary change of ownership report, but I am hesitant because I'm afraid of all the headaches it can cause down the road. I'm also concerned I will have to pay capital gains and/or transfer tax on the sale, is that the case? What is the safest, legally sound, most secure and cost effective way to transfer 50% ownership interest (entitling him to half the property - equity, proceeds, costs, etc) without jeopardizing myself too much? The way he has proposed bypasses escrow, title insurance, disclosures, etc, he just wants to pay me and I sign off on the title change. Thoughts from the pros out there? i'm new to all this, and in over my head.  I will probably also consult with an attorney asap but want to hear thoughts from people who have done this before. I know there's a method that uses a lien and an operating agreement to establish the partnership, is that a better route and would that work via  1031 exchange?