| Cooperation Clause |
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Exchange Contract Cooperation Clause Your contract to sell or purchase real estate must contain wording that shows an intent to perform a 1031 exchange in the purchase and sales agreement. This is called an exchange cooperation clause. At Waterford 1031 Exchange Services, LLC we suggest the following wording: Relinquished Property Buyer hereby acknowledges that Seller intends to complete a tax deferred exchange under IRC Section 1031, provided that the exchange will not delay the closing hereunder or cause additional expense to the Buyer. The Seller's rights under the purchase and sale agreement may be assigned to a Qualified Intermediary selected by the Seller for the purpose of completing the exchange. Buyer agrees to cooperate with Seller and the Qualified Intermediary selected by Seller (in the manner described in this paragraph) to complete the exchange. Replacement Property Seller is aware that Buyer intends to perform an IRC 1031 tax deferred exchange. Buyer requests Seller's cooperation in such an exchange and agrees to hold Seller harmless from any and all claims, costs, liabilities, or delays in time resulting from such an exchange. Seller agrees to the assignment of this contract by the Buyer. |
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