Posted by William L Exeter on May 29, 2005 at 23:57:03:
Yes, absolutely, as long as it meets all of the other requirements, including the requirement that the investor had the intent to hold the property for investment.
The tenant would simply notify the investor that they are exercising the option to buy. The 1031 exchange qualified intermediary (accommodator) would open an exchange account and would assign into the purchase and sale agreement. The option money depends on whether it is allocated to the purchase price or is just option money.