[WSBARP] 1031 Exchange question re: identifying replacement property

Tue Sep 19 11:17:06 PDT 2017

The identification rules basically state that the identification must be written, signed, dated, reasonably specific and delivered to a non disqualified third party.  A purchase and sale agreement typically meets that criteria and unless withdrawn, I would consider it a valid identification.  Nothing says the identification needs to be delivered to the intermediary although it is best practice. In this case if we were facilitating, absent some additional facts, we would consider it a valid identification.   The question then turns on if this additional identification, combined with the other property identified to the intermediary exceeds the 3 property or 200% rule.

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marc Holmes
Sent: Tuesday, September 19, 2017 10:40 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] 1031 Exchange question re: identifying replacement property

I'm not sure but will ask.

Marc Holmes
Holmes Law Group PLLC
2303 W. Commodore Way, # 306
Seattle WA 98199
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Bryce Dille
Sent: Tuesday, September 19, 2017 10:17 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] 1031 Exchange question re: identifying replacement property

When the first offer was made did the exchanger send the written offer to the facilitator advising the facilitator that this was a property that could be a replacement property?

[cid:image001.jpg at 01D1AB8F.1C8227E0]

Bryce H. Dille | Attorney at Law

P: 253.848.3513| F: 253.845.4941
317 South Meridian
Puyallup, WA 98371
bryced at cdb-law.com<mailto:bryced at cdb-law.com>
www.cdb-law.com<http://www.cdb-law.com/>

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Business Entity Creation and Management
Business, Government and Tax Law
Real Estate and Land Use, Residential, Commercial and Condominium Development
Real Estate and Commercial Transactions & Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator
Estate Planning, including Wills and Trusts, and Probate Administration
Representation Homeowners/Condominium Association Real Estate Developments
Real Property Foreclosures and Forfeitures

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marc Holmes
Sent: Tuesday, September 19, 2017 10:09 AM
To: 'WSBA Real Property Listserv'; wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>
Subject: [WSBARP] 1031 Exchange question re: identifying replacement property

Short version:  Is an offer to purchase sufficient identification of a replacement property for purposes of a 1031 exchange?

Client made an offer on a house contingent upon the sale of vacant land intending to do a 1031 exchange.  Seller wouldn't come down in price so it went nowhere.  The land sale subsequently closed and proceeds were received by a 1031 facilitator.  Later, client made a second offer on the property but again seller wouldn't budge.

Fast forward to today and seller is willing to accept client's offer but the 45 day period expired last Friday without client submitting anything formal to the 1031 facilitator to identify this or any other replacement property.

Facilitator is still holding the funds from the land sale and an employee thereof suggested back dating a new offer on the property to last Friday.  That seems unethical or worse so I'm wondering if there's another way.

Marc Holmes
Holmes Law Group PLLC
2303 W. Commodore Way, # 306
Seattle WA 98199
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

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