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| Five Easy StepsStep One
Consult with your tax advisor
Before setting up a 1031 exchange, it is always important to consult with your tax advisor. Land Title Exchange will act as your qualified intermediary, but cannot offer tax or legal advice.Step TwoContact Land Title Exchange.Contact Land Title Exchange to act as your Qualified Intermediary. As your Qualified Intermediary, Land Title Exchange will work with your closing agent to prepare exchange documents, and will review and approve the closing statement.
Step ThreeClose on your Relinquished Property. Once you have closed on the sale of your relinquished property, the deadlines for your exchange are triggered. You now have 45 days to identify replacement properties.
Step Four
Identify your Replacement Property. There are three identification rules that may be used to determine the number of identified properties:
- Three Property Rule. Up to three replacement properties may be identified without regard to their value.
- Two Hundred Percent Rule. There is no limit to the number of properties identified, but their collective value cannot exceed 200% of the value of the relinquished property.
- Ninety-Five Percent Rule. There is no limit to the number of properties identified, without regard to their value, as long as 95% of the value of all proeprties identified are acquired.
Step FiveClose on your Replacement Property.Within 180 days from closing on your relinquished property you must purchase all replacement properties. Land Title Exchange will work with your closing agent to prepare exchange documents, review the closing statement, and disburse exchange funds. |
