Sample 1031 Exchange Cooperation Clause

Sample 1031 Exchange Cooperation Clause

Legal Disclaimer

EXETER 1031 Exchange Services, LLC is pleased to provide the following sample 1031 exchange cooperation clause language as a courtesy to you and your legal, tax or financial advisors.

The following sample cooperation clauses may not be appropriate or suitable under certain circumstances.  1031 exchanges can be extremely complex transactions.  You should always consult with your legal, tax and financial advisors prior to executing any Purchase and Sale Agreements, Escrow Instructions, Tax-Deferred Exchange Agreements and/or any other related transactional documentation for guidance in selecting the most appropriate cooperation clause language to use for your specific 1031 exchange transaction.

Relinquished Property (Sale or Disposition Property)

Buyer acknowledges that Seller intends to perform a tax-deferred exchange transaction pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations and that Seller's rights, title and interest (but not obligations) pursuant to this [Insert Name of Purchase and Sale Agreement or Sales Contract or Escrow Instructions]  will be assigned to EXETER 1031 Exchange Services, LLC, as Seller's Qualified Intermediary, for the purpose of completing Seller's 1031 exchange transaction.

Buyer agrees to cooperate with Seller and EXETER 1031 Exchange Services, LLC at no additional cost or liability to Buyer, by executing the documents necessary to complete Seller's 1031 exchange transaction.

Replacement Property (Purchase or Acquisition Property)

Seller acknowledges that Buyer is completing a tax-deferred exchange transaction pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations and that Buyer's rights, title and interest (but not obligations) pursuant to this  [Insert Name of Purchase and Sale Agreement or Purchase Contract or Escrow Instructions]  will be assigned to EXETER 1031 Exchange Services, LLC, as Seller's Qualified Intermediary, for the purpose of completing Buyer's 1031 exchange transaction. 

Seller agrees to cooperate with Buyer and EXETER 1031 Exchange Services, LLC at no additional cost or liability to Seller, by executing the documents necessary to complete Buyer's 1031 exchange transaction.