“FOLLOW THESE SIMPLE STEPS FOR A SUCCESSFUL TRANSACTION”
STEP #1 – SALE OF THE RELINQUISHED PROPERTY
1. (a) Phone consultation with a Qualified Intermediary (QI).
1. (b) Exchange opened with QI.
1. (c) Pursuant to the Exchange Agreement, an Assignment is executed prior to closing and QI assumes the Exchanger’s Purchase and Sale Contract.
1. (d) QI instructs the closing officer to directly deed the property from the Exchanger to the buyer.
1. (e) Proceeds are transferred directly to QI via wire transfer. QI sets up a separate “Qualified Exchange Account” for each Exchanger.
STEP #2 – IDENTIFICATION OF REPLACEMENT PROPERTY
2. (a) QI provides 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.
2. (b) Exchanger properly identifies potential replacement properties under either the Three Property Rule, 200% Rule or the 95% Rule.
STEP #3 – PURCHASE OF REPLACEMENT PROPERTY
3. (a) 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” re-placement properties.
3. (b) Prior to closing on the replacement property, Exchanger assigns the Purchase & Sale Contract to QI.
3. (c) After the Assignment is executed, the exchange is complete when QII purchases the replacement property with the exchange proceeds and transfers it to the Exchanger by a direct deed from the seller.
Begin Day 0
Initial: Phone Consultation with the Exchanger
Exchange opened with Qualified Intermediary
QI provides exchange documents for sale to closing officer
Sale property deeded to buyer; Sale closed; Funds wired to QI
At 45 days
QI provides identification information and summary of rules
Exchanger identifies property within 45 calendar days
QI forwards exchange documents for purchase to closing officer
Funds wired to closing officer; Direct deed and close of purchase
180 days
Exchange completed in 180 days; Copies of documents to Exchanger
TM 1031 Exchange and Asset Preservation, Inc. do not give tax or legal
advice. The information contained herein should not be relied upon as a
substitute for tax or legal advice obtained from a competent tax and/or
legal advisor.
(c) Copyright 2005 Stewart Title Guaranty Company
