and not the property she would exchange into.  

We do government contract and I did some 10 duplexes in one time a couple years ago.I don't plan on doing the construction itself, but would like to take the construction management in exchange of training.

I would sell it and do a 1031 exchange this way you don't have to wait the 366 days to sell.

Could you kindly explain how the recordation takes place, especially if no funds were exchanged?

Sold a propertty in Colorado;  the crazy hot market there made the sale of mine nice, but now I've got to do a 1031 exchange somewhere else; prices are too high there!  

WE then put 1.2 million into it and resold it at 5 million to the CEO of precision Die cast  a Portland based fortune 500 company.  

The deal would be from a 1031 Exchange on my current rental in San Diego which will go on the market in June.  

It's not the end of the world.Postpone the sale, and have your title company, realty lawyer or yourself - speak to the local council to see what can be done to get rid of the lien.My lawyer has run into it a few times, and the county have worked with them to remove the lien, and many times they have - for the simple reason that a new buyer of the property will take care of it and sort out all it's issues - which essentially is what the county wants.Otherwise, the liens continue to rachet up, will never get paid anyway, and whoever owns the property simply abandons it, which is an expense not only to the county when they eventually condemn it (and remove it), but also a property they recieve precisely $0 each year in property tax once the owner has done a runner.It'll take a bit of time to sort out, hence postponing closing.

I would contact as many 1031 exchange brokers as possible and just get the word out that you are looking to do a bulk buy. 

Seller will consider refinancing the property and financing subject to new loan with a balloon in 5-7 years.What will the tax implications of that sale be vs. bringing additional cash in and exchanging into another property?