This endorsement is made a part of the Policy to which it is attached.

On October 2, 2000 IRS published a new safe harbor for reverse like-kind exchanges.ⁱ This welcome development is the first major change for like-kind exchange transactions since the 1991 final regulations provided safe harbors for standard deferred exchanges.ⁱⁱ The 1991 issuance of deferred exchange regulations resulted in the common practice of utilizing a Qualified Intermediary (QI) to accomplish non-simultaneous like-kind exchanges.

Investment real estate is frequently owned by a partnership of investors who hold title in the partnership's name. Likewise, property owned by tenants in common acting as business or investment partners may be deemed partnership property for tax purposes, regardless of whether or not a formal partnership agreement exists. (See Treas. Reg. §1.761-1(a).) A partnership, as a taxpaying entity, may clearly benefit from capital gains tax deferment by exchanging its qualifying real property assets for like-kind property in a 1031 exchange.

Preceded by months of negotiation between the President and Congress, the final version of S.761 The Electronic Signatures in Global and National Commerce Act, was signed into law by the President on June 30, 2000, and will become effective on October 30, 2000. This federal law seeks to eliminate what many claim as the most significant vulnerability of electronic commerce: That the electronic communicate renders the transaction unenforceable as between the parties.

Suppose that as a closing attorney, you have just closed a purchase transaction and recorded the deed. You inform the seller that he can pick up his sales proceeds, but the seller responds, "Oh, by the way, I want to do a 1031 exchange." Is it too late? What about the client who transfers relinquished property in a properly structured exchange, acquires replacement property with part of the exchange funds, and now wants the remaining exchange funds? Can he get his money?

In a previous article, the new ALTA access, tax parcel and contiguity endorsements were discussed with an emphasis on the practical use of each endorsement as well as an elementary understanding of the divergent coverage offered by each endorsement. In this second part of the new ALTA commercial endorsement series, the following new ALTA forms will be explored: