866.903.1031

Cooperation Clause

Selling Your Relinquished Property
When selling your Relinquished Property, you may want to add the following Cooperation Clause language to your contract:

“In the event Seller so elects, Buyer agrees to cooperate with Seller in effecting a tax-deferred exchange under Internal Revenue Code Section 1031 as amended. Seller shall have the right to elect this tax-deferred exchange at any time prior to the closing date and to assign this contract in connection with such tax-deferred exchange.”

If your contract does not include this Cooperation Clause, the contract can be amended at closing, provided the buyer does not object.

Purchasing Your Replacement Property
When purchasing your Replacement Property, you may want to add the following Cooperation Clause language to your contract:

“In the event the Buyer so elects, Seller agrees to cooperate with Buyer in effecting a tax-deferred exchange under Internal Revenue Code Section 1031 as amended. The buyer shall have the right to elect this tax-deferred exchange at any time prior to the closing date and to assign this contract in connection with such tax-deferred exchange.”

If your contract does not include this Cooperation Clause, the contract can be amended at closing, provided the Seller does not object.