Exchange Process

Starting an exchange is a simple procedure.

The exchanger simply enters into the Purchase and Sale Agreement for the relinquished property. There is little difference between the familiar sale transaction and an exchange performed a Qualified Intermediary.

Step #1 Relinquished Property

1. Contact a Qualified Intermediary upon deciding to perform an exchange. The Intermediary works with all parties, including the real estate agent, attorney, and accountant.
2. The Intermediary will ask for the name and address of the exchanger, the real estate agent, and the escrow holder/closing attorney. This is all the intermediary needs to prepare the documentation. Upon closing, ownership of the exchange property will transfer to the intermediary, and then to the buyer. A Qualified Intermediary will be available to assist everyone involved with answers to any questions that may arise.

Step #2 Identification

Replacement property must be identified within 45 days from closing the relinquished property. The Intermediary provides the necessary documentation to comply with the Treasury guidelines regarding proper identification.

Step #3 Replacement Property

The acquisition of the replacement property must be completed within 180 days of closing the relinquished property. After locating suitable replacement property, the exchanger should enter into an agreement to purchase and immediately notify a Qualified Intermediary.

Instructions to complete the exchange will be delivered to the closing officer and all parties involved for review and signature. The exchange is completed when the property is purchased by a Qualified Intermediary and then transferred to the exchanger.

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You can also view or print our complete 1031 Tax Exchange document in Adobe PDF format.
	1031 Tax Exchange PDF file.

Disclosure
Jerry Babin - Realtor with RE/MAX Southern Realty cannot advise you concerning the specific tax consequences or advisability of a deferred exchange for tax planning purposes. You will be required to seek the counsel of your accountant or attorney. If we can answer any of your general questions, or those of your representatives, please do not hesitate to contact us.