What are the typical steps I have to take to complete a 1031 Exchange?

The typical steps you need to take are:

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

 

 

At Brazos 1031 Exchange Company, we act as qualified intermediary / exchange accomodator for real estate investors and companies doing 1031 real estate exchanges throughout Texas.