What are the risks for seller selling property to a 1031 Investment Company?

am selling my deceased mother's house and a 1031 Exchange Company wants to buy it but they want me to sign an addendum to the contract that I, as the seller, will cooperate with the buyer in a manner neccessary to complete the exchange, but I am NOT MAKING AN EXCHANGE, why am I being asked? All I want is my net proceeds at closing. Will selling to them hold up my net proceeds in any way?

Okay here we go.

A 1031 exchange is a method of selling one house and buying another without being subject to taxes typically imposed. It appears your buyer is in such a situation. When he sells his property the proceeds go directly to the Exchange Company. When his purchase of your home is to close the Exchange company uses these funds for his down payment. The closing statement will actually show the exchange company as the buyer. This is not a concern for you.

Generally this purchasing method is used when a buyer is a real estate investor and he is exchanging one rental property for a new rental property. Again, this is an outside issue and should not impact the sale of the home or hinder the proceeds you receive.

Read the contract thoroughly. If necessary have it reviewed by an attorney. Based on what you have said it does not appear your interest in the property will be comprised.

If you have any-other questions feel free to contact me and if I know the answer I'd be happy to help.