• First, discuss the applicability of a tax-deferred exchange with your legal or tax advisor.
  • Before transferring the relinquished property, call Independent Trustees to be your Qualified Intermediary.
  • Insert a “cooperation clause” in both the contract to sell and the contract to purchase.
  • Independent Trustees will produce the required Exchange Agreement and other important documentation that must be in place before transferring your property.
  • Once an offer is accepted on the relinquished property, immediately seek replacement property. There is a 45 day time frame during which the replacement property must be identified.
  • Within 180 days of the closing date of the relinquished property, the closing on the “like-kind” replacement property must occur. See the section on "Are There Time Restrictions".
  • Independent Trustees will deposit the proceeds in an interest bearing account until they are needed to buy your replacement property.
  • At your direction, Independent Trustees will use the exchange proceeds from the sale of the relinquished property to acquire the like-kind replacement property.
  • In some jurisdictions, Independent Trustees, through its partner BridgeTrust Title Group, can assist in the real estate closing of the replacement property.


NOTE: The content of this website is informational only. It does not constitute tax, legal or accounting advice. Each situation is different and you are advised to seek appropriate professional advice to see if a 1031 Exchange meets your needs.