Doing a 1031 exchange using a contract for deed purchase can be tricky. A common question we get is: “Can you do a 1031 exchange using a contract for deed purchase, even if the exchangor does not receive the deed immediately?”
In short, yes this would work. A vendee’s interest gives the buyer equitable title. The exchangor can use all of the exchange funds to pay the down payment, and finance the rest with the seller over the term of the contract for deed.
Minnesota 1031 Exchange Company
If you’re considering a like kind exchange of real estate, your best bet is to talk with a qualified intermediary. There are many regulations that govern a 1031 exchange, and you want to make sure you’re covering all of your bases. That’s where we can help – by answering your questions, advising you throughout the entire exchange, and preparing the necessary documents for closing. Contact the qualified intermediaries at Commercial Partners today to get started! You can find us at our primary office in downtown Minneapolis.