Legal Question in Real Estate Law in United States Virgin Islands

Re: 1031 Exchange

1031 Exchanges are done frequently. Generally there is no risk to the Buyer. You should have the P&S reviewed by a local attorney.

What a 1031 exchange provides basically is the Seller has you pay the money to a third party and then later uses the money to buy another property and defers his tax on his gain. The Seller never touches the money but in the end gets a new property. At closing you will do what is normally done, pay the money, sign a closing statement, get title insurance and a mortgage if applicable. You may want to add a clause that any additional costs if any from the 1031 shall be borne by the Seller.

I am not familiar with VI law in particular. You should talk to a local attorney to make sure there are no problems with the P&S when it is completed. Each local jurisdiction has some small differences and customs. Buying a home in MA is different slighlty than buying a home in MI or CA. Each has slightly different requirements.

I hope this is helpful. Feel free to contact me if you have additional questions.