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The Role of the Accomodator The role of the Accomodator is to act as a middleman in both the sale and purchase transactions.
Proper documentation is a must in order to comply with the 1031 Exchange regulations. Included in this documentation is the identification of upleg properties, (All About Exchanges Item 4-2) as well as the Exchange Agreement between the Exchanger and Accomodator, explained below.
In order to create an "arm's length" transaction, the agreement between the Exchanger and Accomodator allows the Exchanger to deed the relinquished property to the Accomodator who then conveys the property to the Buyer. The Accomodator then holds the proceeds from that sale in an interest bearing account in favor of the Exchanger until an upleg property is purchased. Once again, in accordance with the agreement, the Accomodator then acquires the upleg property and conveys it to the Exchanger.
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