HRlawyer

In a 1031 exchange of real property, what can be done about a typographical error on an identification worksheet, after the 45 day identification period has passed?

Specifically, the real estate described is correct, however there was an error made in the percentage of ownership the buyer will obtain in the property.

However, along with other documentations detailing our buyer's intent, along with the identification worksheet itself will show that this was a clerical error. Here is an example of what I mean. We identified more than three properties so we used the 200% rule. Here is what our worksheet looks like,
for the example, our exchange monies in trust are $11,000, allowing us to identify $22,000 in property to purchase.


% ownership to obtain Total Property val This buyer's $$ interest
33.33 $12,000 $4,000
33.33 $12,000 $4,000
33.33 $12,000 $4,000
25% $20,000 $5,000

Total $22,000

This is obviously a simplified version, but the clerical error is on the last property listed. It should show a 50% interest. If you add up our buyer's values they do not add to $22,000 but would had the last property been listed correctly. As mentioned before, we have other documents that support this. I feel like I might be able to survive an IRS audit if we just push forward and document the error, however, I am having trouble convincing our intermediary to release the full amount of funds needed instead of the amount listed on the identification.

Any advice is greatly appreciated.