What is a Reverse Exchange?

Just like it’s name sounds, a Reverse Exchange is the opposite of a Deferred Exchange. It involves the acquisition of replacement property (the new property) through an exchange accommodation titleholder, with whom it is “parked” for no more than 180 days. During this 180 day period, the taxpayer disposes of its relinquished property (the old property) to close the exchange. Basically, in this form of exchange you are buying the new property before selling the old property. Like the Deferred Exchange, the taxpayer enters into a contract with an exchange facilitator (like Brazos 1031) and follows the strict requirements of the IRS rules.

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.