In installment sale transactions, if a buyer walks away, the seller incurs zero cost because the transaction is simply paused rather than completed; all preparatory work including pro forma calculations, trust creation, and tax documentation is already completed and staged for the next buyer, making this a safer alternative to 1031 exchanges that require upfront capital.
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Deep Dive
The biggest fear with an installment sale: what if the buyer walks away?Added:
be the the buyer walked away from the transaction, right? So, what did that cost our client?
Zero. That's right, zero. So, we brought our team in, we calculated and did a pro forma on the intermediary installment sale. We created the intermediary installment sale trust. We did all the tax work. It's all prepared.
The client paid nothing.
Wow. Nothing.
Because the transaction was paused because the buyer walked away. Now, property's still for sale, but what if everything never happens? The client's out zero, right? All this work was put in. Why do we do it? We do it this way because it's the right way to do it.
The opportunity that the client has for the next buyer, everything's already set up. So, that that was, you know, not everything works out the way we planned, uh, but it's staged for the next buyer.
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