Step #1- Sale Of The Relinquished Property
- Phone consultation with 1031 Exchange Place
- The exchange opened with 1031 Exchange Place.
- 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.
