1031 Exchange Process
Exchangor finds a Buyer and opens escrow.
 A) |
Call 1031 Real Estate Services, Inc. (1031RESI)
to set up the Exchange. |
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1. |
Ownership to the Relinquished Property
is transferred to 1031 RESI. |
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2. |
Ownership is immediately transferred to the Buyer
of the Exchangor’s Property |
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3. |
At the close of escrow the Proceeds are wire transferred
from escrow to a bank designated by 1031 RESI or the Exchangor.
The funds are held in a separate account set up for each specific
transaction.
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| B) |
The first half of the transaction is completed at
the close of escrow. It is at this time that the Exchangor must
locate a Replacement Property within 45 days, and then complete
the exchange within 180 days of the close of escrow of the Relinquished
Property. |
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4. |
Once the Replacement Property is located
and is ready to close, exchange credits will be wire transferred
from the bank to the escrow handling the closing of the Replacement
Property. |
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5. |
Ownership to the Replacement Property is transferred
to 1031 RESI. |
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6. |
Ownership to the Replacement Property is then transferred
to the Exchangor to complete the Exchange. |
| C) |
The exchange is completed with the Exchangor giving
property to the Facilitator and in turn receiving a like-kind property. |
Printable Exchange Process
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