Prior to the 1979 Starker decision1, most exchanges were limited to the simultaneous form. In a simultaneous exchange, both properties close the same day. Since 1991, the only "safe-harbor" for a simultaneous exchange is the use of a qualified intermediary.
Types of Exchanges
Exchanging can range anywhere from a simple swap of two properties to a complex, multi-leg, multi-party transaction involving construction and/or reverse exchanges.,
SIMULTANEOUS EXCHANGES
DELAYED EXCHANGES
The Starker decision marked the advent of delayed exchanging. In the delayed exchange, "like-kind" property must be designated within 45 days of the sale closing. The replacement property must be closed by the 180th day. Once the replacement property has been located, the intermediary purchases it and immediately trades the property to the exchangor.
In a delayed exchange, the replacement property must be designated within 45 days of closing of the relinquished property and the replacement property must close within a total of 180 days.
PHASE I:
Begins when the Exchange Agreement is signed and the relinquished property is transferred to a qualified intermediary (1031 Exchange Services, LLC) through an Assignment Agreement. The property is then sold to the buyer and the cash proceeds are deposited into an exchange account.
PHASE II:
Begins once a purchase contract is signed with the seller. The qualified intermediary (1031 Exchange Services, LLC) is assigned the sale of the relinquished property. The exchange is completed when the replacement property is transferred to the taxpayer pursuant to the Exchange Agreement.
1031 Exchange Services, LLC
Phone Number: 1-888-552-1031
Fax Number: 1-828-251-5914
E-mail Address:
info@1031exchangeservices.net
Mailing Address:
1031 Exchange Services, LLC
56 Central Avenue, Suite 201
Asheville, NC 28801
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Phone Number: 1-888-552-1031
Fax Number: 1-828-251-5914
E-mail Address:
info@1031exs.net
Street Address:
1031 Exchange Services, LLC
101 N. Pine Street, Suite 400
Spartanburg, SC 29302
