1031 Exchange Process

Exchangor finds a Buyer and opens escrow.

  1. Seller opens escrow on Relinquished Property
    1. Contact 1031 Real Estate Services, Inc. to set up the exchange.
    2. Ownership of the Relinquished Property is transferred to 1031 RESI.
    3. Ownership is then immediately transferred to the Buyer of the Exchanger’s Property.
    4. At the close of escrow the Proceeds are wire transferred from escrow to a bank designated by 1031 RESI or the Exchanger. The funds are held in a separate account set up for each specific transaction.
  2. Identification Period
    1. Within 45 days of closing on the Relinquished Property, the Replacement Property must be identified.
  3. Purchase Replacement Property
    1. Within 180 days from the close of escrow on the Relinquished Property, a Replacement Property is acquired.
    2. Exchange proceeds will be wire transferred from the bank to the escrow handling the closing of the Replacement Property.
    3. Ownership to the Replacement Property is immediately transferred to 1031 RESI.
    4. Ownership to the Replacement Property is then transferred to the Exchanger to complete the Exchange.
  4. Exchanger must file Tax Form 8824 with their income tax return to report the exchange.