For Exchangers who may not know as much about exchanges, we hope this will be a good reference tool. Of course, we at Fidelity National 1031 Exchange Services, Inc. are always glad to answer any questions you may have, or to explain more fully something you read in this Newsletter. I Have a Mortgage That Must be Paid Off on My Sale Property. The IRS regulations say you must acquire property in your exchange that is like-kind with the property that you are selling. The term like kind relates to the nature or character of the exchange property, not to it's grade or quality.
Real property is considered like kind with any other real property.
Therefore ,a duplex is like-kind with an apartment building or with bare land or with a single family dwelling, if both properties are held for investment or for productive use in a trade or business. A s a part of the advanced planning for an exchange, let your accommodator know that you want to use their services. The accommodator will review the proposed exchange and provide useful information about exchanges. The Exchanger proceeds to enter into an earnest money agreement and open escrow. Call the accommodator when escrow is opened for the sale and the accommodator will begin to document the exchange.