Answer:

No. Two party exchanges, although they do occur, are not common due to the practical nature of the transaction. It is seldom that two parties will agree that equity given and received by the parties are of equal value and worth.

Most exchanges involve four parties. They are, the party desiring the exchange (Exchangor), a buyer for the exchangors relinquished property, a seller of the property the exchanger desires to acquire and an exchange intermediary who orchestrates and manages the exchange transaction for the benefit of the exchangor.

Generally the exchangor will locate a buyer for the property he or she desires to dispose of in an exchange. The relinquished property is then deeded by the exchangor in a non taxable transfer to the intermediary who sells the property to the buyer subject to the prior terms of the agreement between the exchangor and the buyer.

The net proceeds from the intermediaries sale of the relinquished property are held by the intermediary for the purchase of replacement property.

Upon receiving instructions from the exchangor, the intermediary will use the sales proceeds from the sale of the relinquished property to acquire replacement property which is subsequently deeded by the intermediary to the exchangor.

Notice that the exchangor has, in fact, accomplished a two party transaction with the intermediary and has not been involved with the other parties to the sale transaction or the purchase transaction by the intermediary.

In fact, the exchangor has met one of the rigid requirements of a successful exchange by giving up property and receiving only property in a reciprocal manner by utilizing the services of the intermediary as a principal who intervened between the exchangor and the sale and purchase portion of the transaction.