All Forum Posts by: Wendy Lacey

@Dave Foster I think based on the language, we will only move forward if they remove their contingency. We will see what happens - there are other moving parts for this as well. Just wanted to learn more about this in particular. Thanks again to everyone for their insight. 

@Sharon Rosendahl @Wayne Brooks @James Herbold @Dave Foster

Thank you all for your replies!! We truly appreciate your knowledge. I was able to take a look at the counter offer RE 1031 this morning and wanted to share additional info. 

They have added in writing "Subject to seller finding replacement property by way of 1031 exchange." Then under standards the contract language states "1031 Exchange: If either Seller of Buyer wish to enter into a like-kind exchange (either simultaneously with Closing or deferred) under Section 1031 of the IRS Code ("Exchange"), the other party shall cooperate in all reasonable respects to effectuate the Exchange, including execution of the documents; provided, however, cooperating party shall incur no liability or expense related to the Exchange, and Closing shall not be contingent upon, nor extended or delayed by, such Exchange." 

Our realtor noted to me that what they have put in the contract is ambiguous and contradicts the contract itself. She also notes that if the seller does not find another property and the sale does not go through, we may lose our EMD.

I also question this and hesitate thinking we will put down the EMD and pay for inspection appraisal and in the end never close because they didn't find a property to complete the Exchange.

She recommends if we move forward, it only be with that handwritten language removed.

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?

So to clarify your answer - Sleep there more than not of the 12 months and specifically in the last month?

If I buy a home with an FHA loan and will be spending more time away can I Air BNB the property for the times I am away during that first year?!