How to Begin:
1.When you list your property with your agent, be sure to disclose your intent to do a 1031 Exchange in the listing agreement
- Request buyer’s cooperation in the exchange
2. Search for your new Replacement property
- Identify the new property within 45 days from the closing on the sale of your Relinquished Property (Day one starts on the day after escrow closes)
- Request seller cooperation in the exchange in your purchase agreement
3. Open escrow on the property you are selling and contact us to open your exchange:
- Provide us with a copy of the purchase agreement between you and your buyer
- Provide us with a copy of the preliminary title report/title commitment
4.Submit 45-day Identification form
- Submit your identified replacement property selection on our identification form that will be provided
- Identification is limited to three (3) properties of any value; or any number of properties over three
whose combined fair market value does not exceed 200% of the gross sales price of the property(ies) you sold; or any number of properties of any value providing that 95% of the value of the properties identified are actually acquired.
5. Notify your exchange coordinator as soon as you open escrow on your new replacement property
- You must close escrow no later than 180 days following the close of escrow on the relinquished property. Remember: File your tax return (for the year in which you sell the relinquished property) after you close escrow on the replacement property. (You will need t file an extension if your replacement Property escrow closes after April 15th
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