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Real Estate Swap Agreement Template for United States

A Real Estate Swap Agreement is a legal document used in the United States that facilitates the exchange of real property between two or more parties. The agreement outlines the terms and conditions of the exchange, including property descriptions, valuations, warranties, and closing conditions. It often incorporates provisions to comply with IRC Section 1031 for tax-deferred exchanges and includes state-specific requirements for property transfers.

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What is a Real Estate Swap Agreement?

The Real Estate Swap Agreement serves as a comprehensive legal framework for property exchanges in the United States. This document is particularly useful when parties wish to exchange properties of similar value while potentially deferring capital gains taxes under IRC Section 1031. The agreement includes detailed property descriptions, valuation mechanisms, due diligence requirements, and closing conditions. It's commonly used by investors, developers, and property owners seeking to restructure their real estate holdings efficiently. The document must comply with both federal regulations and state-specific property laws.

What sections should be included in a Real Estate Swap Agreement?

1. Parties: Identification and details of all parties involved in the swap

2. Background: Context and purpose of the swap agreement

3. Definitions: Key terms used throughout the agreement

4. Property Descriptions: Detailed descriptions of properties being exchanged

5. Exchange Terms: Core terms of the swap including valuations and timing

6. Representations and Warranties: Statements of fact about properties and parties

7. Closing Conditions: Requirements for completing the exchange

What sections are optional to include in a Real Estate Swap Agreement?

1. Due Diligence Period: Terms for property inspection period and investigation rights

2. Boot Provisions: Terms for handling any cash or non-like-kind property in the exchange when properties have unequal values

3. Qualified Intermediary Provisions: Terms regarding use of a qualified intermediary for 1031 exchange structure

What schedules should be included in a Real Estate Swap Agreement?

1. Property Descriptions Schedule: Detailed legal descriptions of properties including metes and bounds or lot descriptions

2. Title Reports: Current title reports for both properties

3. Environmental Reports: Environmental assessment results and compliance documentation

4. Property Inspection Reports: Results of property inspections including structural, mechanical, and other relevant assessments

5. Existing Leases: Copies of any existing lease agreements affecting the properties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Document Type

Exchange Agreement

Cost

Free to use

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