1031 Exchange Guide

• Home
• 1031 FAQ
• 1031 Requirements
• 1031 Exchange Process
• Types of 1031 Exchanges

• IRS Section 1031
• 1031 Exchange Glossary
• 1031 Exchange Books

1031 Exchange Step-by-Step Process

A typical 1031 exchange involves the following steps:

1. An investor decides to sell investment property and do a 1031 exchange. He contacts a qualified intermediary (QI) and they enter into an agreement.

2. The investment property is put on the market.

3. An offer to purchase the investment property is accepted and signed by the QI.

4. Escrow for the sale is opened, and a preliminary title report is produced.

5. The QI sends required exchange documents to the escrow closer for signing at property closing.

6. Escrow closes.

7. Within the first 45 days after the close of escrow on the sale of the relinquished property, the investor identifies replacement properties as required by law. This is the Identification Period.

8. Within 180 days after the close of escrow on the sale of the relinquished property, the investor closes on one of the replacement properties which he has identified. This is the Exchange Period.