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Exchanger: Interested party who owns property to be exchanged.
Like-Kind: Refers to the nature or character of the property,
not the quality or grade. Typically, real property is “Like-Kind” to
all other real property. For example, you can sell a local
multi-family duplex for a single tenant office building.
Relinquished
Property: The property that is “sold” by the exchanger. This part of
the transaction can be referred to as the “down-leg”.
Replacement
Property: The property that is “acquired” by the exchanger. This part
of the transaction can be referred to as the “up-leg”.
Qualified
Intermediary: A non-affiliated third party that has intimate knowledge
and understanding of Section 1031 and the regulations. They hold the
funds from the sale of the relinquished property and then reinvest the
funds as the client directs, upon chose of suitable replacement
property.
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