Can Multiple Owners of a Single Property Exchange into Different Properties?
If the intent of varies owners of a single properties is to go their separate way it is important to first review with legal counsel the manner in which the property title is held before selling. Once any title issues are resolved the property can be sold and exchanged. In such a circumstance one investor can do an exchange while another can receive cash and pays taxes. It is very important that the investors be clear on their intentions before entering into an exchange agreement with a Qualified Intermediary (QI). Once the property being sold is closed and all exchange investors have entered into one exchange agreement the exchangers lose their options to divide the proceeds and buy separate replacement properties. Does the Investor have Access to the Sale Proceeds During the Exchange? Part of doing an exchange is that the investor does not take constructive receipt of the sales proceeds. If no property is identified during the 45 day identification period the investor can receive the
