[Sholom Patterson]

Sholom Patterson

Hi.

I was reading about the Super Louie exchange Jack mentioned in Money Matters and was wondering how did Louie get around the agents for these for sale homes? If no money is changing hands in this exchange, not much is available to pay an agents commission…

[Bill Cook]

Bill Cook

Sholom,

There are two ways to do a 1031 Exchange. It would be a good idea to read this code section.

First way is the new way: property is sold, Intermediary holds the your proceeds money. You have 45 days to identify your target property or properties. You have 180 days to close on your target property/properties.

Second way is the old way. This is the way many Millerites use. They simply trade deeds.

As to the agent getting paid: The seller has a contract with the realtor. The seller is responsible for paying the realtor’s commission. With a 1031, more than likely an amount will need to be discussed and agreed to ahead of time.

Hope this helps.

Bill Cook