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1031 Addenda TO CONTRACT FOR SALE AND PURCHASE OF REAL ESTATE Re: The Contract is hereby modified to add the following paragraph: The parties agree that the Seller desires to transfer the Property
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How to fill out 1031 addendum to contract
How to fill out 1031 addendum to contract:
01
Review the existing contract: Begin by carefully reviewing the main contract that needs to be amended. Understand the specific terms and clauses that require modification or addition through the addendum.
02
Identify the changes required: Determine the specific changes or additions that need to be made to the contract. This could include adding or removing clauses, modifying dates or deadlines, and addressing any other necessary revisions.
03
Draft the addendum: Create a document specifically for the addendum, ensuring it includes a clear title such as "1031 Addendum to Contract." Use a standard format with a clear heading, indicating the parties involved, the purpose of the addendum, and the effective date.
04
State the amendments: Clearly state each amendment or addition in a concise manner. Begin each point with a specific number or letter for easy reference.
05
Provide detailed information: Elaborate on each amendment, providing clear and unambiguous wording to avoid any potential confusion or misunderstandings. Use precise language to ensure the intent is accurately conveyed.
06
Include signatures: Ensure that all parties involved in the original contract and the addendum sign and date the document. This confirms their agreement with the amendments made and makes the addendum legally binding.
Who needs a 1031 addendum to contract?
A 1031 addendum to a contract is typically needed in real estate transactions involving the use of a 1031 exchange. It is specifically required when the parties involved agree to exchange certain properties in a manner that qualifies for tax-deferred treatment under Section 1031 of the Internal Revenue Code. This addendum clarifies the terms and conditions related to the exchange, including specific identification rules, timelines, and any additional provisions necessary for compliance with the 1031 exchange requirements.
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