The Addendum for Section 1031 Exchange (TREC No. 60-0), dated 11-04-2024 on the form, is one of TREC's shortest addenda — two substantive paragraphs — and it's worth being precise about what it does and doesn't cover.
What the form actually says
Paragraph A is a checkbox: seller or buyer intends to use the property to accomplish an exchange of like-kind properties under Section 1031 of the Internal Revenue Code, as amended. Paragraph B is the entire operative commitment: "The parties will reasonably cooperate to accomplish the exchange provided: (i) the non-exchanging party will not incur any additional expense or liability; and (ii) closing will not be delayed as a result of the exchange."
What it protects — and what it doesn't build
That's the whole mechanism: a cooperation promise, bounded by two protections for whichever party isn't doing the exchange — no added cost, no added liability, and no delay to the Closing Date on their account. The form itself doesn't set an identification deadline, name a qualified intermediary, describe replacement-property rules, or reference any IRS timeline. Those mechanics come entirely from federal tax law and the exchanging party's own qualified intermediary arrangement — none of it is sourced from this TREC form, and none of it should be assumed or filled in without a tax professional's input. If a client is actually planning a 1031 exchange, this addendum documents the transaction's cooperation terms; it is not a substitute for exchange guidance from a CPA, 1031 qualified intermediary, or tax attorney.