sounds like the buyers agent propose a long escrow so that the seller can use some funds before the closing? that's very odd. escrow usually will not release any fund until closing. unless he is telling the seller to locate next property using long escrow time by accepting buyer's firm price with strict terms( for example, larger deposit, longer than 45 days escrow time, no back out contingencies etc ).
1031 exchange needs to be setup right at the beginning and have very strict rules for like kind properties. usually the escrow company would be the exchange intermediate who can hold on to the money until the seller find their target within the certain time frame.
