Document:

PURCHASE AGREEMENT
             Timber Lodge Steakhouse - Rochester, MN

This  AGREEMENT, entered into effective as of the 30th  of  June,
2000.

l.   PARTIES.  Seller  is  AEI  Real  Estate  Fund  XVII  Limited
Partnership  which presently owns an undivided 100%  interest  in
the fee title to that certain real property legally described  in
the attached Exhibit "A" (the "Entire Property")  Buyer is Thomas
A.  Park  and Jenny Lou Park, married as joint tenants ("Buyer").
Seller wishes to sell and Buyer wishes to buy a portion as Tenant
in Common of Seller's interest in the Entire Property.

2. PROPERTY. The Property to be sold to Buyer in this transaction
consists    of   an   undivided   10.0825   percentage   interest
(hereinafter, simply the "Property") as Tenant in Common  in  the
Entire Property.

3.  PURCHASE  PRICE  .  The purchase price  for  this  percentage
interest in the Entire Property is $250,000, all cash.

4.  TERMS.  The purchase price for the Property will be  paid  by
Buyer as follows:

     (a)  When this agreement is executed, Buyer will pay  $5,000
     to Seller (which shall be deposited into escrow according to
     the  terms hereof) (the "First Payment"). The First  Payment
     will  be  credited against the purchase price  when  and  if
     escrow closes and the sale is completed.

     (b)  Buyer  will deposit the balance of the purchase  price,
     $245,000  (the  "Second Payment") into escrow in  sufficient
     time to allow escrow to close on the closing date.

5. CLOSING DATE.  Escrow shall close on or before July 15, 2000.

6.  DUE  DILIGENCE. Buyer will have until the expiration  of  the
tenth  business day (The "Review Period") after delivery of  each
of  following items, to be supplied by Seller, to conduct all  of
its  inspections  and due diligence and satisfy itself  regarding
each  item, the Property, and this transaction.  Buyer agrees  to
indemnify and hold Seller harmless for any loss or damage to  the
Entire  Property or persons caused by Buyer or its agents arising
out of such physical inspections of the Entire Property.

     (a)   The  original  and  one  copy  of  a  title  insurance
     commitment  for  an  Owner's  Title  insurance  policy  (see
     paragraph 8 below).

     (b)  A  copy  of  a Certificate of Occupancy or  other  such
     document  certifying completion and granting  permission  to
     permanently  occupy the improvements on the Entire  Property
     as are in Seller's possession.

     (c)  A  copy of an "as built" survey of the Entire  Property
     done concurrent with Seller's acquisition of the Property.

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

     (d) Lease (as further set forth in paragraph 11(a) below) of
     the Entire Property showing occupancy date, lease expiration
     date,  rent,  and  Guarantys, if any,  accompanied  by  such
     tenant  financial statements as may have been provided  most
     recently to Seller by the Tenant and/or Guarantors.

It  is a contingency upon Seller's obligations hereunder that two
(2)  copies  of Co-Tenancy Agreement in the form attached  hereto
duly  executed  by  Buyer and AEI Real Estate Fund  XVII  Limited
Partnership and dated on escrow closing date be delivered to  the
Seller on the closing date.

      Buyer may cancel this agreement for ANY REASON in its  sole
discretion  by  delivering a cancellation notice, return  receipt
requested,  to Seller and escrow holder before the expiration  of
the  Review  Period. Such notice shall be deemed  effective  only
upon  receipt  by Seller.  If this Agreement is not cancelled  as
set forth above, the First Payment shall be non-refundable unless
Seller shall default hereunder.

      If  Buyer  cancels this Agreement as permitted  under  this
Section,  except  for  any  escrow  cancellation  fees  and   any
liabilities  under  the first paragraph  of  section  6  of  this
agreement  (which will survive), Buyer (after execution  of  such
documents   reasonably  requested  by  Seller  to  evidence   the
termination  hereof)  shall be returned its  First  Payment,  and
Buyer  will have absolutely no rights, claims or interest of  any
type  in  connection  with  the  Property  or  this  transaction,
regardless of any alleged conduct by Seller or anyone else.

      Unless this Agreement is canceled by Buyer pursuant to  the
terms  hereof, if Buyer fails to make the Second Payment,  Seller
shall   be  entitled  to  retain  the  First  Payment  and  Buyer
irrevocably will be deemed to be in default under this Agreement.
Seller  may, at its option, retain the First Payment and  declare
this Agreement null and void, in which event Buyer will be deemed
to  have canceled this Agreement and relinquish all rights in and
to  the  Property or Seller may exercise its rights under Section
14  hereof.   If  this Agreement is not canceled and  the  Second
Payment  is  made  when required, all of Buyer's  conditions  and
contingencies will be deemed satisfied.

7.  ESCROW. Escrow shall be opened by Seller and funds  deposited
in  escrow upon acceptance of this Agreement by both parties. The
escrow  holder  will  be a nationally-recognized  escrow  company
selected by Seller. A copy of this Agreement will be delivered to
the  escrow holder and will serve as escrow instructions together
with the escrow holder's standard instructions and any additional
instructions required by the escrow holder to clarify its  rights
and  duties  (and  the  parties agree to  sign  these  additional
instructions).  If  there  is any conflict  between  these  other
instructions and this Agreement, this Agreement will control.

8.   TITLE. Closing will be conditioned on the agreement  of  Old
Republic  National Title Insurance Company to  issue  an  Owner's
policy of title insurance, dated as of the close of escrow, in an
amount equal to the purchase price, insuring that Buyer will  own
insurable  title  to  the Property subject  only  to:  the  title
company's  standard exceptions; current real property  taxes  and
assessments;  survey  exceptions;  the  rights  of   parties   in
possession pursuant to the lease defined in paragraph  11  below;
all  matters of public record; and other items disclosed to Buyer
during the Review Period.

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

      Buyer shall be allowed five (5) days after receipt of  said
commitment  for examination and the making of any  objections  to
marketability thereto, said objections to be made in  writing  or
deemed  waived.  If any objections are so made, the Seller  shall
be  allowed eighty (80) days to make such title marketable or  in
the  alternative  to  obtain  a commitment  for  insurable  title
insuring over Buyer's objections.  If Seller shall decide to make
no  efforts to make title marketable, or is unable to make  title
marketable or obtain insurable title, (after execution  by  Buyer
of  such documents reasonably requested by Seller to evidence the
termination  hereof) Buyer's First Payment shall be returned  and
this Agreement shall be null and void and of no further force and
effect.  Seller has no obligation to spend any funds or make  any
effort to satisfy Buyer's objections, if any.

      Pending  satisfaction of Buyer's objections,  the  payments
hereunder  required shall be postponed, but upon satisfaction  of
Buyer's objections and within ten (10) days after written  notice
of  satisfaction of Buyer's objections to the Buyer, the  parties
shall perform this Agreement according to its terms.

9.   CLOSING COSTS.  Seller will pay one-half of escrow fees, the
cost  of  the title commitment, deed stamp tax and any  brokerage
commissions  payable.  The Buyer will pay the cost of  issuing  a
Standard  Owners Title Insurance Policy in the full amount of the
purchase  price,  if  Buyer shall decide to  purchase  the  same.
Buyer  will pay all recording fees, one-half of the escrow  fees,
and the cost of an update to the Survey in Sellers possession (if
an  update  is required by Buyer.)  Each party will pay  its  own
attorney's fees and costs to document and close this transaction.

10.  REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND PRORATIONS.

     (a)  Because the Entire Property (of which the Property is a
     part) is subject to a triple net lease (as further set forth
     in  paragraph 11(a)(i), the parties acknowledge  that  there
     shall  be no need for a real estate tax proration.  However,
     Seller  represents  that to the best of its  knowledge,  all
     real  estate  taxes and installments of special  assessments
     due  and  payable in all years prior to the year of  Closing
     have been paid in full.  Unpaid real estate taxes and unpaid
     levied and pending special assessments existing on the  date
     of  Closing shall be the responsibility of Buyer and  Seller
     in   proportion  to  their  respective  Tenant   in   Common
     interests,  pro-rated, however, to the date of  closing  for
     the   period   prior  to  closing,  which   shall   be   the
     responsibility of Seller if Tenant shall not pay  the  same.
     Seller  and  Buyer  shall likewise pay  all  taxes  due  and
     payable   in   the  year  after  Closing  and   any   unpaid
     installments  of special assessments payable  therewith  and
     thereafter,  if  such  unpaid  levied  and  pending  special
     assessments and real estate taxes are not paid by any tenant
     of the Entire Property.

     (b)   All income and all operating expenses from the  Entire
     Property  shall be prorated between the parties and adjusted
     by them as of the date of Closing.  Seller shall be entitled
     to  all  income  earned  and shall be  responsible  for  all
     expenses  incurred prior to the date of Closing,  and  Buyer
     shall  be entitled to its proportionate share of all  income
     earned and shall be responsible for its proportionate  share
     of all operating expenses of the Entire Property incurred on
     and after the date of closing.

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

11.  SELLER'S REPRESENTATION AND AGREEMENTS.

     (a)  Seller represents and warrants as of this date that:

     (i)   Except  for the Lease Agreement in existence  between,
     AEI   Real   Estate  Fund  XVII  Limited  Partnership,   (as
     "Landlord")  and  Timber Lodge Steakhouse, Inc.  ("Tenant"),
     dated  January  15, 1998 and amended on September  3,  1998,
     Seller  is  not  aware of any leases of the  Property.   The
     above  referenced lease agreement has an option to  purchase
     in  favor of the Tenant as set forth in paragraph 33 of said
     lease agreement.

     (ii)   It  is  not  aware  of  any  pending  litigation   or
     condemnation  proceedings against the Property  or  Seller's
     interest in the Property.

     (iii)   Except  as  previously disclosed  to  Buyer  and  as
     permitted in paragraph (b) below, Seller is not aware of any
     contracts Seller has executed that would be binding on Buyer
     after the closing date.

       (iv)  In addition to the acts and deeds recited herein and
     contemplated  to  be performed, executed, and  delivered  by
     Seller,  Seller shall perform, execute and deliver or  cause
     to  be performed, executed, and delivered at the Closing  or
     after  the  Closing,  any and all further  acts,  deeds  and
     assurances as Seller or the Title Company may require and be
     reasonable   in   order  to  consummate   the   transactions
     contemplated herein.

     (v)   Seller  has  all  requisite  power  and  authority  to
     consummate  the  transaction contemplated by this  Agreement
     and  has by proper proceedings duly authorized the execution
     and  delivery of this Agreement and the consummation of  the
     transaction contemplated hereby.

     (vi)   To  Seller's  knowledge, neither  the  execution  and
     delivery  of  this  Agreement nor the  consummation  of  the
     transaction  contemplated  hereby  will  violate  or  be  in
     conflict with (a) any applicable provisions of law, (b)  any
     order  of  any  court or other agency of  government  having
     jurisdiction  hereof, or (c) any agreement or instrument  to
     which Seller is a party or by which Seller is bound.

     (vii)  Seller is legally qualified to transact  business  in
     Texas  and has made all necessary filings with the Secretary
     of State of Texas in this regard.

     (b)   Provided  that  Buyer performs  its  obligations  when
     required, Seller agrees that it will not enter into any  new
     contracts that would materially affect the Property  and  be
     binding  on  Buyer  after the Closing Date  without  Buyer's
     prior  consent,  which  will not be  unreasonably  withheld.
     However,  Buyer acknowledges that Seller retains  the  right
     both  prior to and after the Closing Date to freely transfer
     all or a portion of Seller's remaining undivided interest in
     the  Entire Property, provided such sale shall not  encumber
     the  Property being purchased by Buyer in violation  of  the
     terms hereof or the contemplated Co-Tenancy Agreement.

     (i)   Seller knows of no wells or underground storage  tanks
     on the Property.

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

12.  DISCLOSURES.

     (a)   Seller  has not received any notice of  any  material,
     physical,  or  mechanical defects of  the  Entire  Property,
     including  without  limitation, the plumbing,  heating,  air
     conditioning, ventilating, electrical system. To the best of
     Seller's  knowledge without inquiry, all such items  are  in
     good  operating condition and repair and in compliance  with
     all  applicable  governmental, zoning, and  land  use  laws,
     ordinances,  regulations and requirements.  If Seller  shall
     receive any notice to the contrary prior to Closing,  Seller
     will inform Buyer prior to Closing.

     (b)   To  the  best  of  seller's  knowledge,  the  use  and
     operation  of the Entire Property is not in full  compliance
     with  applicable building codes, safety, fire,  zoning,  and
     land use laws, and other applicable local, state and federal
     laws,  ordinances, regulations and requirements.  If  Seller
     shall  receive any notice to the contrary prior to  Closing,
     Seller will inform Buyer prior to Closing.

     (c)   Seller  knows  of no facts nor has  Seller  failed  to
     disclose  to  Buyer  any fact known to  Seller  which  would
     prevent  the  Tenant  from using and  operating  the  Entire
     Property after the Closing in the manner in which the Entire
     Property  has been used and operated prior to  the  date  of
     this  Agreement.  If Seller shall receive any notice to  the
     contrary prior to Closing, Seller will inform Buyer prior to
     Closing.

     (d)   Seller  has  not received any notice that  the  Entire
     Property is in violation of any federal, state or local law,
     ordinance, or regulations relating to industrial hygiene  or
     the  environmental conditions on, under, or about the Entire
     Property,   including,  but  not  limited  to,   soil,   and
     groundwater conditions.  To the best of Seller's  knowledge,
     there  is  no  proceeding  or inquiry  by  any  governmental
     authority   with  respect  to  the  presence  of   Hazardous
     Materials  on  the  Entire  Property  or  the  migration  of
     Hazardous Materials from or to other property.  Buyer agrees
     that  Seller will have no liability of any type to Buyer  or
     Buyer's  successors,  assigns, or affiliates  in  connection
     with  any  Hazardous Materials on or in connection with  the
     Entire  Property  either before or after the  Closing  Date,
     except such Hazardous Materials on or in connection with the
     Entire Property arising out of Seller's gross negligence  or
     intentional misconduct.  If Seller shall receive any  notice
     to  the contrary prior to Closing, Seller will inform  Buyer
     prior to Closing.

     (e)   BUYER AGREES THAT IT SHALL BE PURCHASING THE  PROPERTY
     IN  ITS  THEN PRESENT CONDITION, AS IS, WHERE IS, AND SELLER
     HAS  NO  OBLIGATIONS TO CONSTRUCT OR REPAIR ANY IMPROVEMENTS
     THEREON  OR TO PERFORM ANY OTHER ACT REGARDING THE PROPERTY,
     EXCEPT AS EXPRESSLY PROVIDED HEREIN.

     (F)  BUYER ACKNOWLEDGES THAT, HAVING BEEN GIVEN THE OPPORTUNITY
     TO INSPECT THE ENTIRE PROPERTY AND SUCH FINANCIAL INFORMATION ON
     THE LESSEE AND GUARANTORS OF THE LEASE AS BUYER OR ITS ADVISORS
     SHALL REQUEST, IF IN SELLER'S POSSESSION, BUYER IS RELYING SOLELY
     ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
     INFORMATION PROVIDED BY SELLER OR TO BE PROVIDED EXCEPT AS SET
     FORTH HEREIN.  BUYER FURTHER ACKNOWLEDGES THAT THE INFORMATION
     PROVIDED AND TO BE PROVIDED BY SELLER WITH RESPECT TO THE
     PROPERTY, THE ENTIRE

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

     PROPERTY  AND  TO  THE LESSEE AND GUARANTORS  OF  LEASE  WAS
     OBTAINED  FROM A VARIETY OF SOURCES AND SELLER  NEITHER  (A)
     HAS  MADE INDEPENDENT INVESTIGATION OR VERIFICATION OF  SUCH
     INFORMATION,  OR  (B) MAKES ANY REPRESENTATIONS  AS  TO  THE
     ACCURACY  OR  COMPLETENESS  OF SUCH  INFORMATION  EXCEPT  AS
     HEREIN SET FORTH.  THE SALE OF THE PROPERTY AS PROVIDED  FOR
     HEREIN  IS  MADE  ON AN "AS IS" BASIS, AND  BUYER  EXPRESSLY
     ACKNOWLEDGES  THAT, IN CONSIDERATION OF  THE  AGREEMENTS  OF
     SELLER  HEREIN,  EXCEPT  AS OTHERWISE  SPECIFIED  HEREIN  IN
     PARAGRAPH 11(A) AND (B) ABOVE AND THIS PARAGRAPH 12,  SELLER
     MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED,  OR
     ARISING BY OPERATION OF LAW, INCLUDING, BUT NOT LIMITED  TO,
     ANY  WARRANTY  OF  CONDITION,  HABITABILITY,  TENANTABILITY,
     SUITABILITY  FOR  COMMERCIAL PURPOSES,  MERCHANTABILITY,  OR
     FITNESS  FOR  A  PARTICULAR  PURPOSE,  IN  RESPECT  OF   THE
     PROPERTY.

     The provisions (d) - (f) above shall survive Closing.

13.  CLOSING.

     (a)   Before  the  closing date, Seller  will  deposit  into
     escrow  an  executed limited warranty deed warranting  title
     against  lawful  claims by, through, or under  a  conveyance
     from   Seller,  but  not  further  or  otherwise,  conveying
     insurable  title of the Property to Buyer,  subject  to  the
     exceptions contained in paragraph 8 above.

     (b)   On or before the closing date, Buyer will deposit into
     escrow:  the  balance  of the purchase price  when  required
     under  Section  4; any additional funds required  of  Buyer,
     (pursuant to this agreement or any other agreement  executed
     by  Buyer)  to  close escrow.  Both parties  will  sign  and
     deliver  to the escrow holder any other documents reasonably
     required by the escrow holder to close escrow.

     (c)   On  the  closing date, if escrow is in a  position  to
     close,  the  escrow  holder will: record  the  deed  in  the
     official  records  of  the  county  where  the  Property  is
     located;  cause  the title company to commit  to  issue  the
     title  policy; immediately deliver to Seller the portion  of
     the  purchase price deposited into escrow by cashier's check
     or  wire  transfer  (less debits and  prorations,  if  any);
     deliver  to  Seller  and Buyer a signed counterpart  of  the
     escrow  holder's certified closing statement  and  take  all
     other actions necessary to close escrow.

14.   DEFAULTS.  If Buyer defaults, Buyer will forfeit all rights
and  claims  and  Seller will be relieved of all obligations  and
will  be  entitled to retain all monies heretofore  paid  by  the
Buyer.   In  addition, Seller shall retain all remedies available
to Seller at law or in equity.

     If Seller shall default, Buyer irrevocably waives any rights
to file a lis pendens, a specific performance action or any other
claim,  action or proceeding of any type in connection  with  the
Property or this or any other transaction involving the Property,
and  will  not  do  anything to affect title to the  Property  or
hinder,  delay  or  prevent  any  other  sale,  lease  or   other
transaction involving the Property (any and all of which will  be
null  and void), unless: it has paid the First Payment, deposited
the  balance  of the Second Payment for the purchase  price  into
escrow, performed all of its other obligations and satisfied  all
conditions under this Agreement, and unconditionally

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

notified  Seller that it stands ready to tender full performance,
purchase  the  Property and close escrow as per  this  Agreement,
regardless  of any alleged default or misconduct by  Seller.   In
the  alternative, should Seller default, Buyer may terminate this
Agreement  and  shall be returned its First  Payment.   Provided,
however, that in no event shall Seller be liable for any  actual,
punitive, consequential or speculative damages arising out of any
default by Seller hereunder.

15.  BUYER'S REPRESENTATIONS AND WARRANTIES.

     a.  Buyer represents and warrants to Seller as follows:

     (i)   In  addition to the acts and deeds recited herein  and
     contemplated  to  be performed, executed, and  delivered  by
     Buyer, Buyer shall perform, execute and deliver or cause  to
     be  performed,  executed, and delivered at  the  Closing  or
     after  the  Closing,  any and all further  acts,  deeds  and
     assurances as Seller or the Title Company may require and be
     reasonable   in   order  to  consummate   the   transactions
     contemplated herein.

     (ii)   Buyer  has  all  requisite  power  and  authority  to
     consummate  the  transaction contemplated by this  Agreement
     and  has by proper proceedings duly authorized the execution
     and  delivery of this Agreement and the consummation of  the
     transaction contemplated hereby.

     (iii)   To  Buyer's  knowledge, neither  the  execution  and
     delivery  of  this  Agreement nor the  consummation  of  the
     transaction  contemplated  hereby  will  violate  or  be  in
     conflict with (a) any applicable provisions of law, (b)  any
     order  of  any  court or other agency of  government  having
     jurisdiction  hereof, or (c) any agreement or instrument  to
     which Buyer is a party or by which Buyer is bound.

16.  DAMAGES, DESTRUCTION AND EMINENT DOMAIN.

     (a)   If, prior to closing, the Property or any part thereof
     be  destroyed  or further damaged by fire, the elements,  or
     any cause, due to events occurring subsequent to the date of
     this Agreement to the extent that the cost of repair exceeds
     $10,000.00,  this Agreement shall become null and  void,  at
     Buyer's  option exercised, if at all, by written  notice  to
     Seller within ten (10) days after Buyer has received written
     notice  from Seller of said destruction or damage.   Seller,
     however,  shall  have  the right to  adjust  or  settle  any
     insured  loss  until  (i)  all contingencies  set  forth  in
     Paragraph 6 hereof have been satisfied, or waived; and  (ii)
     any  ten-day  period provided for above in this Subparagraph
     16a  for  Buyer  to  elect to terminate this  Agreement  has
     expired  or  Buyer has, by written notice to Seller,  waived
     Buyer's right to terminate this Agreement.  If Buyer  elects
     to  proceed  and  to  consummate the purchase  despite  said
     damage  or  destruction, there shall be no reduction  in  or
     abatement of the purchase price, and Seller shall assign  to
     Buyer the Seller's right, title, and interest in and to  all
     insurance  proceeds  (pro-rata in  relation  to  the  Entire
     Property) resulting from said damage or destruction  to  the
     extent  that the same are payable with respect to damage  to
     the  Property, subject to rights of any Tenant of the Entire
     Property.

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

     If  the cost of repair is less than $10,000.00, Buyer  shall
     be  obligated  to  otherwise  perform  hereinunder  with  no
     adjustment  to  the Purchase Price, reduction or  abatement,
     and  Seller shall assign Seller's right, title and  interest
     in and to all insurance proceeds pro-rata in relation to the
     Entire  Property,  subject to rights of any  Tenant  of  the
     Entire Property.

     (b)   If,  prior  to  closing, the  Property,  or  any  part
     thereof,  is  taken by eminent domain, this Agreement  shall
     become null and void, at Buyer's option.  If Buyer elects to
     proceed  and to consummate the purchase despite said taking,
     there  shall  be  no  reduction in,  or  abatement  of,  the
     purchase  price,  and  Seller  shall  assign  to  Buyer  the
     Seller's  right,  title, and interest in and  to  any  award
     made, or to be made, in the condemnation proceeding pro-rata
     in relation to the Entire Property, subject to rights of any
     Tenant of the Entire Property.

      In the event that this Agreement is terminated by Buyer  as
provided  above  in  Subparagraph 16a or 16b, the  First  Payment
shall  be immediately returned to Buyer (after execution by Buyer
of  such documents reasonably requested by Seller to evidence the
termination hereof).

17.  BUYER'S 1031 TAX FREE EXCHANGE.

      While  Seller  acknowledges that Buyer  is  purchasing  the
Property  as  "replacement property" to  accomplish  a  tax  free
exchange,   Buyer   acknowledges  that   Seller   has   made   no
representations,  warranties, or agreements to Buyer  or  Buyer's
agents  that  the transaction contemplated by the Agreement  will
qualify  for such tax treatment, nor has there been any  reliance
thereon by Buyer respecting the legal or tax implications of  the
transactions contemplated hereby.  Buyer further represents  that
it has sought and obtained such third party advice and counsel as
it  deems  necessary in regards to the tax implications  of  this
transaction.

      Buyer  wishes  to  novate/assign the ownership  rights  and
interest  of  this  Purchase  Agreement  to  Investment  Property
Exchange Services, Inc. which will act as Accommodator to perfect
the  1031 exchange by preparing an agreement of exchange of  Real
Property. Investment Property Exchange Services, Inc. will be  an
independent  third  party purchasing the  ownership  interest  in
subject  property from Seller and selling the ownership  interest
in  subject property to Buyer under the same terms and conditions
as documented in this Purchase Agreement.  Buyer asks the Seller,
and  Seller  agrees  to cooperate in the perfection  of  such  an
exchange  if at no additional cost or expense to Seller or  delay
in time.  Buyer hereby indemnifies and holds Seller harmless from
any claims and/or actions resulting from said exchange.  Pursuant
to  the direction of Investment Property Exchange Services, Inc.,
Seller will deed the Property to Buyer.

18.  CANCELLATION

     If  any party elects to cancel this Contract because of  any
     breach by another party or because escrow fails to close  by
     the  agreed date, the party electing to cancel shall deliver
     to escrow agent a notice containing the address of the party
     in  breach and stating that this Contract shall be cancelled
     unless  the  breach  is cured within 10 days  following  the
     delivery  of  the notice to the escrow agent.  Within  three
     days after receipt of such notice,

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

     the  escrow agent shall send it by United States Mail to the
     party  in breach at the address contained in the Notice  and
     no  further notice shall be required. If the breach  is  not
     cured  within  the  10 days following the  delivery  of  the
     notice   to  the  escrow  agent,  this  Contract  shall   be
     cancelled.

19.  MISCELLANEOUS.

     (a)  This Agreement may be amended only by written agreement
     signed by both Seller and Buyer, and all waivers must be  in
     writing  and signed by the waiving party.  Time  is  of  the
     essence.   This  Agreement  will not  be  construed  for  or
     against  a party whether or not that party has drafted  this
     Agreement.  If there is any action or proceeding between the
     parties relating to this Agreement the prevailing party will
     be  entitled to recover attorney's fees and costs.  This  is
     an  integrated  agreement containing all agreements  of  the
     parties  about the Property and the other matters described,
     and  it  supersedes any other agreements or  understandings.
     Exhibits  attached  to this Agreement are incorporated  into
     this Agreement.

     (b)   If this escrow has not closed by July 15, 2000, Seller
     or Buyer may extend the closing date, or exercise any remedy
     available  to  them  by  law,  including  terminating   this
     Agreement.

     (c)  Funds to be deposited or paid by Buyer must be good and
     clear  funds in the form of cash, cashier's checks  or  wire
     transfers.

     (d)   All notices from either of the parties hereto  to  the
     other  shall be in writing and shall be considered  to  have
     been  duly  given or served if sent by first class certified
     mail,  0return receipt requested, postage prepaid, or  by  a
     nationally recognized courier service guaranteeing overnight
     delivery to the party at his or its address set forth below,
     or  to  such  other  address  as such  party  may  hereafter
     designate by written notice to the other party.

     If to Seller:

          Attention:  Robert P. Johnson
          AEI Real Estate Fund XVII Limited Partnership
          1300 Minnesota World Trade Center
          30 E. 7th Street
          St. Paul, MN  55101

     If to Buyer:

          Thomas A. and Jenny Lou Park
          103 Las Lomas
          Austin, TX  78746

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

           When  accepted, this offer will be a binding agreement
for  valid  and  sufficient consideration  which  will  bind  and
benefit  Buyer,  Seller  and  their  respective  successors   and
assigns.   Buyer is submitting this offer by signing  a  copy  of
this  offer  and delivering it to Seller.  Seller  has  five  (5)
business days from receipt within which to accept this offer.

      This  Agreement  shall be governed by, and  interpreted  in
accordance with, the laws of the state of Minnesota.

      IN WITNESS WHEREOF, the Seller and Buyer have executed this
Agreement effective as of the day and year above first written.

BUYER: Thomas A. Park and Jenny Lou Park, married as joint tenants

       By:/s/ Thomas A Park
              Thomas A. Park

       By:/s/ Jenny Lou Park
              Jenny Lou Park

                WITNESS:
          (as to both signers)

         /s/ JP Scott

             JP Scott
           (Print Name)

SELLER:  AEI Real Estate Fund XVII Limited Partnership

         By:  AEI Fund Management XVII, Inc., its
              corporate general partner

         By:/s/ Robert P Johnson
                Robert P. Johnson, President

                            WITNESS:

           /s/ Jill Rayburn

               Jill Rayburn
               (Print Name)

     Buyer Initial: /s/ TAP /s/ JLP
     Purchase Agreement for Timber Lodge-Rochester, MN

                            EXHIBIT A

Lot 2, Block 1, Commonweal First Subdivision, in the City of
Rochester, Olmsted County, Minnesota, together with Cross
Easement Agreement dated December 30, 1996, recorded January 23,
1997, as Document No. 744314PROPERTY CO-TENANCY
                       OWNERSHIP AGREEMENT
            (Timber Lodge Steakhouse - Rochester, MN)

THIS CO-TENANCY AGREEMENT,

Made and entered into as of 3rd day of July, 2000, by and between
Thomas  A.  Park  and Jenny Lou Park, married  as  joint  tenants
(hereinafter  called  "Park"), and  AEI  Real  Estate  Fund  XVII
Limited Partnership (hereinafter called "Fund XVII").  Park, Fund
XVII  (and any other Owner in Fee where the context so indicates)
being hereinafter sometimes collectively called "Co-Tenants"  and
referred to in the neuter gender).
WITNESSETH:

WHEREAS,  Fund XVII presently owns an undivided 89.9175% interest
in and to, and Park owns an undivided 10.0825% interest in and to
the  land  situated in the City of Rochester, County of  Olmsted,
and  State  of  MN,  (legally described upon Exhibit  A  attached
hereto  and  hereby  made  a  part hereof)  and  in  and  to  the
improvements located thereon (hereinafter called "Premises");

WHEREAS,  The  parties  hereto wish to provide  for  the  orderly
operation  and management of the Premises and Park's interest  by
Fund  XVII;  the continued leasing of space within the  Premises;
for  the distribution of income from and the pro-rata sharing  in
expenses of the Premises.

NOW  THEREFORE, in consideration of the purchase by  Park  of  an
undivided  interest  in and to the Premises,  for  at  least  One
Dollar  ($1.00) and other good and valuable consideration by  the
parties  hereto  to  one another in hand paid,  the  receipt  and
sufficiency of which are hereby acknowledged, and of  the  mutual
covenants and agreements herein contained, it is hereby agreed by
and between the parties hereto, as follows:

1.    The  operation  and  management of the  Premises  shall  be
delegated  to  Fund XVII, or its designated agent, successors  or
assigns.  Provided, however, if Fund XVII shall sell all  of  its
interest in the Premises, the duties and obligations of Fund XVII
respecting  management  of  the Premises  as  set  forth  herein,
including but not limited to paragraphs 2, 3, and 4 hereof, shall
be exercised by the holder or holders of a majority undivided co-
tenancy interest in the Premises. Except as hereinafter expressly
provided to the contrary, each of the parties hereto agrees to be
bound  by  the  decisions  of  Fund  XVII  with  respect  to  all
administrative,  operational  and  management  matters   of   the
property  comprising the Premises, including but not  limited  to
the  management of the net lease agreement for the Premises. Park
hereto  hereby  designates Fund XVII as its  sole  and  exclusive
agent to deal with, and Fund XVII retains the sole right to  deal
with,  any  property agent or tenant and to negotiate  and  enter
into, on terms and provisions satisfactory to Fund XVII, monitor,
execute  and  enforce  the terms of leases of  space  within  the
Premises,  including but not limited to any amendments,  consents
to  assignment, sublet, releases or modifications  to  leases  or
guarantees  of  lease  or easements affecting  the  Premises,  on
behalf  of  Park.  As long as Fund XVII owns an interest  in  the
Premises,  only Fund XVII may obligate Park with respect  to  any
expense for the Premises.

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

As  further set forth in paragraph 2 hereof, Fund XVII agrees  to
require any lessee of the Premises to name Park as an insured  or
additional  insured in all insurance policies  provided  for,  or
contemplated by, any lease on the Premises. Fund XVII  shall  use
its best efforts to obtain endorsements adding Co-Tenants to said
policies  from  lessee  within 30 days of  commencement  of  this
agreement. In any event, Fund XVII shall distribute any insurance
proceeds it may receive, to the extent consistent with any  lease
on  the  Premises,  to  the Co-Tenants  in  proportion  to  their
respective ownership of the Premises.

2.    Income and expenses shall be allocated among the Co-Tenants
in  proportion to their respective share(s) of ownership.  Shares
of  net income shall be pro-rated for any partial calendar  years
included within the term of this Agreement. Fund XVII may  offset
against,  pay to itself and deduct from any payment due to  under
this  Agreement, and may pay to itself the amount of Park's share
of  any reasonable expenses of the Premises which are not paid by
Park  to  Fund  XVII or its assigns, within ten (10)  days  after
demand by Fund XVII. In the event there is insufficient operating
income  from  which  to deduct Park's unpaid share  of  operating
expenses,  Fund  XVII may pursue any and all legal  remedies  for
collection.

Operating  Expenses  shall  include  all  normal  and  reasonable
operating  expense,  including but not limited  to:  maintenance,
utilities,   supplies,   labor,   management,   advertising   and
promotional expenses, salaries and wages of rental and management
personnel,  except  as to managers above the  level  of  property
manager,  leasing  commissions to unaffiliated third  parties,  a
monthly  accrual  to pay insurance premiums, real  estate  taxes,
installments  of  special assessments and for structural  repairs
and  replacements,  management fees, legal  fees  and  accounting
fees,  but excluding all operating expenses paid by tenant  under
terms  of any lease agreement of the Premises.  Any such expenses
which are not for the exclusive benefit of the premises shall  be
equitably pro-rated.

Park  has  no  requirement to, but has,  nonetheless  elected  to
retain, and agrees to annually reimburse, Fund XVII in the amount
of  $700 for the expenses, direct and indirect, incurred by  Fund
XVII   in   providing   Park   with  quarterly   accounting   and
distributions  of  Park's share of net income and  for  tracking,
reporting  and  assessing  the calculation  of  Park's  share  of
operating  expenses  incurred from  the  Premises.  This  invoice
amount  shall be pro-rated for partial years and Park  authorizes
Fund XVII to deduct such amount from Park's share of revenue from
the Premises. Park may terminate this agreement in this paragraph
respecting  accounting and distributions at any time and  attempt
to  collect its share of rental income directly from the  tenant;
however, enforcement of all other provisions of the lease remains
the  sole right of Fund XVII pursuant to Section 1 hereof.   Fund
XVII  may terminate its obligation under this paragraph  upon  30
days  notice to Park prior to the end of each anniversary hereof,
unless agreed in writing to the contrary.

  3.   Full, accurate and complete books of account shall be kept
       in accordance with generally accepted accounting principles at
       Fund XVII's principal office, and each Co-Tenant shall have
       access to such books and may inspect and copy any part thereof
       during normal business hours. Within ninety (90) days after the
       end of each calendar year during the term hereof, Fund XVII shall
       prepare an accurate income statement for the ownership of the
       Premises for said calendar

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

  year  and  shall furnish copies of the same to all  Co-Tenants.
  Quarterly,  as  its  share, Park shall be entitled  to  receive
  10.0825%  of all items of income and expense generated  by  the
  Premises.   Upon  receipt of said accounting, if  the  payments
  received by each Co-Tenant pursuant to this Paragraph 3 do  not
  equal,  in  the aggregate, the amounts which each are  entitled
  to  receive proportional to its share of ownership with respect
  to  said  calendar  year  pursuant to Paragraph  2  hereof,  an
  appropriate  adjustment shall be made so  that  each  Co-Tenant
  receives the amount to which it is entitled.

4.    If  Net Income from the Premises is less than $0.00  (i.e.,
the  Premises  operates  at a loss), or if capital  improvements,
repairs, and/or replacements, for which adequate reserves do  not
exist,  need  to  be made to the Premises, the  Co-Tenants,  upon
receipt  of  a  written request therefor from Fund  XVII,  shall,
within  fifteen (15) business days after receipt of notice,  make
payment to Fund XVII sufficient to pay said net operating  losses
and  to provide necessary operating capital for the premises  and
to   pay   for   said   capital  improvements,   repairs   and/or
replacements, all in proportion to their undivided  interests  in
and to the Premises.

5.    Co-Tenants  may, at any time, sell, finance,  or  otherwise
create  a lien upon their interest in the Premises but only  upon
their  interest  and not upon any part of the interest  held,  or
owned, by any other Co-Tenant.  All Co-Tenants reserve the  right
to escrow proceeds from a sale of their interests in the Premises
to obtain tax deferral by the purchase of replacement property.

6.    If any Co-Tenant shall be in default with respect to any of
its  obligations hereunder, and if said default is not  corrected
within  thirty  (30)  days after receipt by said  defaulting  Co-
Tenant  of written notice of said default, or within a reasonable
period  if  said default does not consist solely of a failure  to
pay money, the remaining Co-Tenant(s) may resort to any available
remedy to cure said default at law, in equity, or by statute.

7.    This Co-Tenancy agreement shall continue in full force  and
effect  and shall bind and inure to the benefit of the  Co-Tenant
and  their respective heirs, executors, administrators,  personal
representatives, successors and permitted assigns  until  January
15,  2028,  or upon the sale of the entire Premises in accordance
with  the  terms hereof and proper disbursement of  the  proceeds
thereof,   whichever  shall  first  occur.   Unless  specifically
identified  as  a  personal contract right or obligation  herein,
this  agreement shall run with any interest in the  Property  and
with  the  title thereto. Once any person, party  or  entity  has
ceased  to  have an interest in fee in any portion of the  Entire
Property,  it  shall not be bound by, subject to or benefit  from
the  terms  hereof;  but  its  heirs, executors,  administrators,
personal representatives, successors or assigns, as the case  may
be, shall be substituted for it hereunder.

8.    Any notice or election required or permitted to be given or
served by any party hereto to, or upon any other, shall be  given
to  all known Co-Tenants and deemed given or served in accordance
with  the  provisions  of  this  Agreement,  if  said  notice  or
elections addressed as follows;

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

If to Fund XVII:

AEI Real Estate Fund XVII Limited Partnership
1300 Minnesota World Trade Center
30 E. Seventh Street
St. Paul, Minnesota  55101

If to Park:

Thomas A. and Jenny Lou Park
103 Las Lomas
Austin, TX  78746

Each mailed notice or election shall be deemed to have been given
to,  or served upon, the party to which addressed on the date the
same  is  deposited in the United States certified  mail,  return
receipt  requested,  postage prepaid, or given  to  a  nationally
recognized  courier  service guaranteeing overnight  delivery  as
properly addressed in the manner above provided. Any party hereto
may  change  its address for the service of notice  hereunder  by
delivering  written notice of said change to  the  other  parties
hereunder, in the manner above specified, at least ten (10)  days
prior to the effective date of said change.

9.    This  Agreement shall not create any partnership  or  joint
venture  among or between the Co-Tenants or any of them, and  the
only  relationship  among  and between the  Co-Tenants  hereunder
shall  be  that  of owners of the premises as tenants  in  common
subject to the terms hereof.

10.    The  unenforceability or invalidity of  any  provision  or
provisions  of  this Agreement as to any person or  circumstances
shall  not render that provision, nor any other provision hereof,
unenforceable or invalid as to any other person or circumstances,
and  all  provisions hereof, in all other respects, shall  remain
valid and enforceable.

11.   In  the  event  any litigation arises between  the  parties
hereto  relating  to  this Agreement, or any  of  the  provisions
hereof, the party prevailing in such action shall be entitled  to
receive  from the losing party, in addition to all other  relief,
remedies  and  damages  to  which it is otherwise  entitled,  all
reasonable  costs  and expenses, including reasonable  attorneys'
fees,  incurred by the prevailing party in connection  with  said
litigation.

              REST OF PAGE INTENTIONALLY LEFT BLANK

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

IN WITNESS WHEREOF, The parties hereto have caused this Agreement
to be executed and delivered, as of the day and year first above
written.

Park:                 Thomas A. Park and Jenny Lou Park,  married
as joint tenants

          By:/s/ Thomas A Park
                 Thomas A. Park

          By:/s/ Jenny Lou Park
                 Jenny Lou Park

                WITNESS:
          (as to both signers)

            /s/ JP Scott

                JP Scott
              (Print name)

STATE OF          )
                    ) ss
COUNTY OF         )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify  there  appeared before  me  this         day  of
          ,  2000,  Thomas A. Park, who  executed  the  foregoing
instrument in said capacity.

                         /s/ Melinda Orr
                          Notary Public
          [notary seal]

STATE OF             )
                      ) ss
COUNTY OF            )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify  there  appeared before  me  this         day  of
          ,  2000,  Jenny Lou Park, who  executed  the  foregoing
instrument in said capacity.

                         /s/ Melinda Orr
                             Notary Public

                          [notary seal]

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

Fund XVII:  AEI Real Estate Fund XVII Limited Partnership

            By: AEI Fund Management XVII, Inc., its corporate general
                partner

            By: /s/ Robert P Johnson
                    Robert P. Johnson, President

                            WITNESS:

               /s/ Jill Rayburn

                   Jill Rayburn
                   (Print Name)

State of Minnesota )
                       ) ss.
County of Ramsey  )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify there appeared before me this 23rd day  of  July,
2000,  Robert P. Johnson, President of AEI Fund Management  XVII,
Inc.,  corporate  general partner of AEI Real  Estate  Fund  XVII
Limited Partnership who executed the foregoing instrument in said
capacity  and  on  behalf of the corporation in its  capacity  as
corporate general partner, on behalf of said limited partnership.

                         /s/ Brian K Schulz
                             Notary Public

                                             [notary seal]

Co-Tenant Initial: /s/ TAP /s/ JLP
Co-Tenancy Agreement for Timber Lodge-Rochester, MN

                              EXHIBIT A

Lot  2,  Block 1, Commonweal First Subdivision, in  the  City  of
Rochester,  Olmstead  County,  Minnesota,  together  with   Cross
Easement Agreement dated December 30, 1996, recorded January  23,
1997, as Document No. 744314.

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