Federal statutes require certain elements for a valid exchange to occur.
John Kennedy works with you to make sure you meet all these requirements.
- Proclaim "intent to exchange".
Upon entering into a purchase and sale agreement, buyer and/or seller must proclaim in writing the intent to exchange.
- Replace all equity and debt with same or higher amount.
- Meet critical exchange dates.
Within 45 days from closing on the sale of the relinquished property, seller must designate up to three properties (any of which could be purchased in the "exchange") and complete the form provided by the qualified intermediary.
Within 180 days from closing on the sale of the relinquished property, replacement property must be acquired.
- Use a Qualified Intermediary.
Although a Qualified Intermediary handles the exchange documentation, a traditional escrow company works closely on the exchange to accommodate the proper flow of both documents and wire transfer of funds.
- Do not have constructive receipt of any exchange funds.