Owner thereafter requests that Exchangor distribute to him the remaining cash prior to the end of the exchange period. Owner properly identifies a single replacement property but, after the close of the identification period and after negotiating in good faith with the seller of the identified replacement property, the owner is unable to reach an agreement for the purchase of the property. Owner requests that Exchangor distribute the cash to him prior to the end of the exchange period. To address these situations, Exchangor wishes to amend its standard exchange agreement and its standard qualified trust agreement to add an additional event after which occurrence the restriction that no amounts held by the qualified intermediary shall be paid, loaned, pledged or otherwise made available to the owner would expire. Pursuant to their agreement, B is to transfer real property X to C on May 17, 1991.
B intends to hold any replacement property received for investment.
Also on May 17, B identifies real property J as replacement property. Otherwise, B is entitled to all funds in escrow after November 13, 1991. The funds in escrow may be used to purchase the replacement property. Real property J is not rezoned from residential to commercial use on or before August 14, 1991. Thus, the safe harbor ceased to apply and B was in constructive receipt of the funds held in escrow.