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Updated over 5 years ago,

User Stats

25
Posts
12
Votes
Wendy Lacey
  • Rental Property Investor
  • Lakeland, FL (lakeland)
12
Votes |
25
Posts

Is it a good to buy a property if sellers add a 1031 contingency?

Wendy Lacey
  • Rental Property Investor
  • Lakeland, FL (lakeland)
Posted

My fiancé and I are looking to buy our first investment property, a duplex under and FHA loan. We recently through out an offer and the seller accepted with a contingency on a 1031. Our real estate agent has advised that it may not be a good idea to move forward on as it seems the seller will look to obtain the property back if unsuccessful finding another property within the time frame necessary for the 1031 tax laws. I'm still learning about the 1031 tax law and know if can provide benefits when selling a property and getting another. Is this something the seller could do? What is the downside if you are buying a property from another investor using the 1031 tax law for their benefit?

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