Real estate exchange law clarified

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DEAR BOB: We want to sell our rental house and build a house at the back of our adult children's property. This would not be a lot split so the ground will remain in their names. However, the house will be ours to rent out until such time as we want to move into it ourselves. Will this qualify for an Internal Revenue Code 1031 tax-deferred exchange? – Rachel H. DEAR RACHEL: No. The situation you describe will not qualify for an Internal Revenue Code 1031 tax-deferred exchange. Purchase Bob Bruss reports online. The reason it is not eligible is you won't be purchasing a qualifying property of equal or greater cost and equity held for investment or use in a trade or business with the sales proceeds from the rental house. Building a rental house on non-owned property just won't qualify. For details, please consult your tax adviser. DO PROPERTY LIENS "EVAPORATE" OVER TIME? DEAR BOB: I've been told that some property liens "evaporate" over time. Is this true? – Albert B....