Pursuant to the Exchange Agreement, an Assignment is executed prior to closing and 1031 Exchange Place assumes the Exchanger’s Purchase and Sale Contract.
1031 Exchange Place instructs the closing officer to directly deed the property from the Exchanger to the buyer.
Proceeds are transferred directly to 1031 Exchange Place via wire transfer. 1031 Exchange Place sets up a separate “Qualified Exchange Account” for each Exchanger.
Step #2- Identification Of Replacement Property
1031 Exchange Place provides the Exchanger confirmation of exchange proceeds received; the 45-Day Identification Period and 180-Day Exchange Period; the specific identification requirements; summary of the Identification Rules.
Exchanger properly identifies potential replacement properties under either the Three Property Rule, 200% Rule or the 95% Rule.
Step #3- Purchase Of Replacement Property
The exchanger has a total of 180 calendar days from the relinquished property closing date, or their tax filing date, whichever is earlier, to acquire “like-kind” replacement properties.
Prior to closing on the replacement property, Exchanger assigns the Purchase & Sale Contract to API.
After the Assignment is executed, the exchange is complete when API purchases the replacement property with the exchange proceeds and transfers it to the Exchanger by a direct deed from the seller.