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1031X exchange process

The IRS dictates your order of operations.
You need to be able to prove that your 1031 exchange follows the rules.
That’s where we come in.

Step-by-Step Tour

1. Contact 1031X

Tell us about your upcoming sale or purchase. We’ll need to know a few basic details, but this stage is really about expectation setting, answering important questions, and making you feel comfortable.

2. Sign Exchange Documents

Once your structure is in place, you’ll quickly receive electronic agreements to set up your 1031 exchange and your individual Qualified Escrow Account. All 1031X agreements are encrypted and saved for a minimum of 7 years.

3. Close on Your Relinquished Sale

We take care of all of the details, coordination, and document preparation. Your Exchange Officer will be in constant communication with your settlement attorney or escrow officer. After closing, your sale proceeds will be safely escrowed with our partner deposit institution.

4. Identify Replacement Properties

During your critical 45-Day identification window, you’ll be able to list, replace, or delete potential replacement properties — all within one secure online form.

5. Contract to Buy Your Replacement(s)

Let your Exchange Officer know as soon as you have an executed purchase and sale agreement. After you sign a quick Assignment of Contract, 1031X will immediately begin coordinating with the settlement agent.

6. Close on Your Replacement Purchase

This step must take place within 180 days of your Relinquished Sale. Again, 1031X will take care of all of the details for you. Prior to closing, you’ll sign a Release Form to authorize transfer of your escrowed proceeds to the closing table.

7. Enjoy the Tax Benefits

We’ll keep your exchange information on hand whenever you or your tax preparer need them. Of course, you can always log in and access them yourself anytime. Now you can focus on investing the way you want to.

Qualification requirements

To perform a 1031 exchange, you must
Acquire new property that is at least as valuable as what you sell in a 1031 exchange
(This is net of closing costs, but not net of mortgage or other repaid debts)
Identify up to 3 potential replacement properties within 45 calendar days from your sale
(It is possible to identify more than 3, but the rules become more difficult)
Close on all 1031 exchange purchases within 180 calendar days from your sale
Retain consistent ownership – the same taxpayer(s) must be on title for any sale and purchase
Hire an intermediary to assist you during your transactions and safeguard the proceeds from your sale.
(This is why companies like ours exist ー we are a "Qualified Intermediary")

Learn to Master 1031 Exchanges

Whether you are brand new, or need an advanced strategy, this is your go-to center for Section 1031 Exchanges.