In order to realize the tax benefits available under Section 1031, the Seller must enter into an Exchange Agreement with a Qualified Intermediary. In a standard “forward” exchange, the Seller enters into a contract to sell the “Relinquished Property” to a third party buyer. The Seller’s rights under the contract are assigned to the Qualified Intermediary to protect the purchase price from becoming taxable income to the Seller. Within 45 days the Seller must identify one or more “Replacement Properties” which will be acquired with the sale proceeds. We will gladly assist with the proper and timely identification of the Replacement Property.

  Later (within 180 days of closing on the sale of the Relinquished Property), the Seller must close on the purchase of the Replacement Property (which can be one or more separate parcels). We will arrange for transfer of the protected funds to the closing on the Replacement Property, preserving the tax benefits of the like kind exchange.

  One of the most critical elements in successfully completing an exchange is strict adherence to the IRS mandated time frames. Forty-five days after the transfer of the Relinquished Property, potential Replacement Properties must be identified. We will make the identification process as simple as possible, maximizing the exchanger’s flexibility. The time frame to close on the acquisition of the Replacement Property is 180 days from the transfer of the Relinquished Property. We will have the funds available for distribution whenever an investor is ready to proceed. Documentation will always be completed in time to meet transaction deadlines.