Agreement For Two-Party Exchange Of Real Estate Property (Comprehensive)
This Agreement made [date] by and between [name] (First Party) and [name] (Second Party).
INTRODUCTION
1. First Party is the owner of a certain parcel of Real Estate property known as [description], which he holds for investment and which will hereafter be referred to as the subject property.
2. First Party wishes to exchange the subject property for other property to be held for investment in an exchange which will qualify for nonrecognition of gain as designated under the specific code(s) of the Internal Revenue Service.
3. Second Party wishes to acquire the subject property, but does not currently own any investment property which would be acceptable to First Party.
THE PARTIES AGREE AS FOLLOWS:
1. Acquisition of Parcel. Second Party agrees to acquire investment property to be designated by First Party within [number] days hereof, hereinafter referred to as the designated property, and Second Party agrees further to exchange the designated property for the subject property upon the terms hereinafter set forth.
2. Exchange of Property. First Party agrees to exchange the subject property for the designated property upon the terms hereinafter set forth.
3. Assumption of Loans. The exchange shall be conditioned on Second Party's ability to assume the following loans of record secured by the subject property:
4. Equity in Property. The parties agree that the present equity in the subject property, based on the loan balances shown above, is ---------- dollars ($----------). If, at close of escrow, the balances of the above loans of record shall have been reduced from the amounts shown hereinabove, as a result of obligatory loan payments made after this date, then the agreed equity shall be increased by the amount of such loan reduction.
5. Cost of Acquired Property. Second Party's net cost of the designated property shall be equal to its purchase price including any and all costs of acquisition of the designated property and less any encumbrance which is to be assumed or taken subject to by First Party.
6. Differences in Value. If Second Party's net cost of the designated property shall be in excess of the agreed equity in the subject property, First Party shall pay to Second Party the excess in the form of [describe manner of payment]; and if the agreed equity in the subject property shall be in excess of Second Party's net cost of the designated property, Second Party shall pay to First Party the excess in the form of [describe manner of payment].
7. Termination of Contract. If an applicable investment property shall not have been designated by First Party within [number] days from the execution of this Agreement, this Agreement shall terminate and neither party shall be obligated to perform any of the terms and conditions hereof. Provided, however, that by an agreement in writing, this Agreement may be extended by the parties.
8. Designation of Property. If a property is designated, Second Party shall use his best efforts to acquire the same for the price and in the manner designated and exchange said property with First Party for the subject property; in the event that the designated property cannot be acquired and exchanged within an additional period of [number] days from the date designated, at the option of either party to this Agreement, all of the rights and obligations of the parties shall terminate. Provided, however, that in the event Second Party shall become obligated to acquire the designated property, this Agreement may not be terminated by First Party, so long as Second Party shall be diligently proceeding to complete the acquisition of the designated property.
9. Form of Designation. First Party agrees to use his best efforts to select a suitable property and designate the same within the time provided herein. Such designation shall include specification of the maximum purchase price of such property, acceptable to First Party, acceptance liens and encumbrances if any, any conditions of his acceptance of the designated property, and the name and address of the owner to whom offers should be addressed.
10. Simultaneous Closing. The parties agree that the exchange shall be completed simultaneously with the acquisition of the designated property by Second Party, through a single escrow or through escrows which shall be closed concurrently. [Name] is hereby designated as escrow holder.
11. Commissions. Second Party shall not be obligated to pay any real estate commission on the exchange, and any real estate commission payable shall be paid by First Party.
12. Encumbrances. In addition to any encumbrances referred to above, both parties shall take title subject to (a) real estate taxes not yet due and (b) covenants, conditions, restrictions, reservations, rights, rights of way, and easements of record, if any, that do not materially affect the value or intended use of the property.
13. Title Examination. [Number] days from date of acceptance hereof are allowed each of the parties hereto for examination of title to the properties to be acquired by them and to report in writing any valid objections thereto. Any exceptions to title that would be disclosed by examination of the records shall be deemed to have been accepted unless reported in writing within said [number] days. If any objections are reported, the conveying party shall use all due diligence to...
(Excerpt)
Premium Contract: Ready to fill-in and print. Instant download only $29.95!
How to prepare legal forms (click 
Premium Contract: Ready to fill-in and print. Instant download only $29.95!