The typical steps you need to take are:
- Owner and buyer sign sales contract for property with a cooperation clause
- Owner and/or their Realtor retains Brazos 1031 Exchange Company before closing.
- Owner signs Brazos 1031 Exchange Company’s exchange documents at the title company during closing on the property being sold (“Relinquished Property”).
- Sale proceeds are wired to Brazos 1031 Exchange Company’s client trust account.
- Owner identifies new investment property (“Replacement Property”) within 45 days of closing.
- Brazos 1031 Exchange Company closes on replacement property within 180 days of original sale (unless due date is extended).
- Property is directly deeded to Owner and the exchange is complete.
- Owner reports the transaction on his tax return in the year in which the Relinquished Property was sold.