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In a delayed or forward exchange, the old or relinquished property is sold before the new or replacement property is purchased.
7 Steps of a Delayed Exchange
1. Exchangor engages Atlas 1031 Exchange to accommodate the exchange by signing an engagement letter and completing a W-9.
2. Sale of old or relinquished property is negotiated and a Real Estate Sales
contract is signed. Remember to include assignment language
in the contract.
3. At the first of two closings, the Exchangor signs the traditional closing documents and three exchange documents.
4. Net exchange proceeds are wired to Leesport/Madison
Bank.
5. Identification and replacement period begins following the closing. Exchangor must identify by the 45th calendar
day replacement property or the exchange ends on the 46th calendar day and the exchange funds are returned to the Exchangor with interest earned. Replacement property must be purchased within 180 calendar days from closing.
6. Real Estate Purchase Agreement is signed by Exchangor. Remember
to include the replacement assignment
language in the contract.
7. Closing is scheduled where traditional closing documents are signed along with exchange documents. Exchange proceeds are wired for closing.
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Andrew W. Gustafson,
CES®
Managing Member
Atlas 1031 Exchange, LLC
Toll Free: 866.521.1031 | EFax: 850.201.6911
Dallas: 214.523.9067 | Destin: 850.837.1031 |
Houston: 713.821.1776
Email: andgus@atlas1031.com
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Atlas 1031 Exchange, LLC is a Qualified Intermediary and does
not provide advice regarding specific tax consequences of IRC 1031 tax
deferred exchanges. Investors are encouraged to seek the
counsel of their attorney and accountant.
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Atlas 1031 Exchange, LLC. All rights reserved. Site designed by VTD, Inc.
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