Many "first timers" are often intimidated by the 1031 exchange process at the on-set but raving about how easy it was at the end. An exchange is simply a sale transaction followed by a purchase transaction linked together by paperwork.
Following are the 10 easy steps to complete your 1031 exchange:
1. Sign your listing agreement. This is the best time to start thinking about completing a 1031
exchange and discuss the tax consequences of your transaction.
2. Enter into an Agreement of Sale with a Buyer. Start looking for desirable replacement property.
3. Contact 1031 CORP. to serve as your Qualified Intermediary (QI). We’ll need the signed Agreement
of Sale and the closing details to get started.
4. 1031 CORP. prepares the Exchange Agreement and provides your closing agent with instructions
to document the transaction as a 1031 exchange.
5. The relinquished property is transferred to your buyer and the closing agent wire transfers the exchange proceeds to your exchange account. Once we receive your funds,
we will forward a confirmation of deposit along with instructions to view your account on-line.
6. The 45-Day Identification Period and 180-Day Exchange Period begin. We provide you detailed instructions to keep this process easy.
7. You identify replacement property. We will acknowledge receipt of your indentification.
8. An Agreement of Sale is signed for the replacement property and, provided the 1031 language is in the Agreement of Sale, the earnest money deposit can be paid from your exchange account. We'll provide the 1031 language for your Agreement.
9. 1031 CORP. provides the closing agent with instructions and wire transfers the exchange funds for closing. We'll review the closing statement prior to closing to ensure any potential 1031 related concerns are addressed before closing.
10. The replacement property is acquired and the 1031 exchange is complete.
Yes, it is that easy! The goal at 1031 CORP. is to keep the exchange process simple for you.
Learn more about the 1031 CORP. Advantage
