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1031 EXCHANGE
SELLER AND BUYER COOPERATION PROVISIONS
 
The following clauses have been created by attorneys as conditions to the sale/purchase contract for the Relinquished and Replacement Properties. One of these clauses or a similar provision should be included in the purchase contract. Any one of the following clauses should be satisfactory in obtaining the cooperation of the Seller or Buyer.
Seller Clauses
 
1.     Seller is aware that Buyer has entered into an agreement to exchange his/her/their Replacement Property to __________________, ("Facilitator") and that Buyer’s signature to this Agreement is not a commitment to purchase the subject property but is given only to facilitate the terms of such exchange.  Buyer shall have the right to novate his rights and obligations under this Agreement to Facilitator and, as a result of that novation, buyer shall receive title to this property from Facilitator.  Seller agrees to enter into a Novation Agreement at the request of Buyer.
 
2.                               Seller agrees to cooperate with a Section 1031 Tax Deferred Exchange in favor of Buyer. As consideration for Seller’s assistance, Buyer agrees to hold Seller harmless from any and all claims, costs or other liability and to indemnify Seller for any loss which may arise from the acquisition or transfer of the Replacement Property.  The “Cooperation” of Seller shall be limited to signing a Novation Agreement transferring all rights and interests in the Purchase Agreement to ______________________________, Buyer’s Exchange Facilitator.
3.                               Buyer, at its election, may substitute for one or more of them _________________________, (“Facilitator”) as a party to this escrow in which event Facilitator shall assume and perform the obligations of Buyer under the Purchase Agreement and Seller agrees to accept the performance by Facilitator and shall tender its performance to Facilitator. Buyer and Seller agree to execute any additional agreements, including amendments to these escrow instructions deemed necessary or desirable by Buyer in order to effect this substitution. In the event of such substitution, Buyer shall guarantee all of the obligations assumed by Facilitator under this escrow.
 
Buyer Clauses
 
1.     Buyer is aware that Seller has entered into an agreement to exchange his/her/their Relinquished Property to ________________________________, "Facilitator") and that Buyer’s signature to this Agreement is not a commitment to purchase the subject property but is given only to facilitate the terms of such exchange. Seller shall have the right to novate his rights and obligations under this Agreement to Facilitator and, as a result of that novation, buyer shall receive title to this property from Facilitator. Buyer agrees to enter into a Novation Agreement at the request of Seller.
 
2.     Buyer agrees to cooperate with a Section 1031 Tax Deferred Exchange in favor of Seller. As consideration for Buyer’s assistance, Seller agrees to hold Buyer harmless from any and all claims, costs or other liability and to indemnify Buyer for any loss which may arise from the acquisition or transfer of the Relinquished Property. The “Cooperation” of Buyer shall be limited to signing a Novation Agreement transferring all rights and interests in the Purchase Agreement to _________________________________, Seller’s Exchange Facilitator.
 
3.     Seller, at its election, may substitute for one or more of them __________________________, (“Facilitator”) as a party to this escrow in which event Facilitator shall assume and perform the obligations of Seller under the Purchase Agreement and Buyer agrees to accept the performance by Facilitator and shall tender its performance to Facilitator. Buyer and Seller agree to execute any additional agreements, including amendments to these escrow instructions deemed necessary or desirable by Seller in order to effect this substitution. In the event of such substitution, Seller shall guarantee all of the obligations assumed by Facilitator under this escrow.
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