There was no agreement as to the treatment of money down. 

In your case you would have to be able to say that you had intended to build this house and hold it but there are now substantial mitigating circumstances you can demonstrate for why you are selling it so quickly.In general new construction and fix n flips do not qualify for 1031 treatment.

Link mentioned exterminators, for my lease I always make sure I inform the tenant they are responsible for pest control beyond termite treatment.

Her neighbour unfortunately passed away from a long battle with cancer today.

I am taking back a second lien on a property undergoing renovation. In a simultaneous transaction, I am entering a security agreement with the owner for a share of any profits from sale and (if applicable) rental, whi...

I have a tenant who moved from CA back to MI to care for a sister in with cancer and more recently an ill parent.

There must be another reason, and it may be the lenders attempts to get around the tax laws.The treatment of the property would not impact the ability, or lack of ability to foreclose in the event of a default.

Her neighbour unfortunately passed away from a long battle with cancer today.

Yikes, the reason the acreage is priced well is cause it is in a "cancer cluster" caused by the thousands of gallons of jet fuel and other chemicals spilled by pratt whitney!

By assigning the option you can still sell it down the road without having to hold it for a year to get capital gains vs income tax treatment.