Personalized Approach
We treat each client as an individual, crafting solutions that cater to your unique needs.
Simplicity
We simplify the process, breaking down complex concepts into clear, understandable terms.
Results
Your financial objectives are our priority. We are committed to helping you achieve your goals.
The Process
1.
PURCHASE CONTRACT
You and your buyer enter into a purchase contract with respect to the sale of your property (known as the “relinquished property”).
2.
RELINQUISHED PROPERTY EXCHANGE DOCUMENTS
Next, contact Exchange Inc. to start the tax-deferred exchange process. We will prepare an exchange agreement, an assignment of the relinquished property purchase contract (assigning your rights as seller to us), a notice of the assignment (for delivery to the buyer), and instructions to the settlement agent necessary to complete the transaction. All of these documents must be signed and dated before or as of the date of closing.
3.
CLOSING THE RELINQUISHED PROPERTY
When the conditions of closing have been met, your relinquished property will be conveyed to the buyer. While the conveyance will be directly from you to the buyer, it will represent a transfer from you to Exchange Inc. in exchange for other property that you will receive at a later date. It also represents the sale from Exchange Inc. to the buyer for cash.The cash proceeds from the sale of the relinquished property must be delivered directly to Exchange Inc.. At no time should you be in either actual or constructive receipt of the cash proceeds.
4.
RELINQUISHED PROPERTY PROCEEDS AND FORMS
Following the relinquished property closing, Exchange Inc. will hold the exchange proceeds and provide you with forms to identify potential replacement properties within the 45-day identification period.
5.
PURCHASE CONTRACT—REPLACEMENT PROPERTY
After you have identified suitable “like-kind” replacement properties and made a decision as to which identified properties you intend to acquire, you will enter into a Purchase Contract with the seller.This replacement property purchase contract should also contain a “cooperation clause” obligating the seller to cooperate with you in completing your tax-deferred exchange. Contact us for a sample “cooperation clause.”
6.
REPLACEMENT PROPERTY EXCHANGE DOCUMENTS
Exchange Inc. will then prepare an assignment of the replacement property purchase contract (assigning your rights as buyer to us), Notice of the Assignment (for delivery to the seller), and instructions to the settlement agent necessary to complete the transaction. All of these documents must be signed before or as of the date of closing.
7.
CLOSING THE REPLACEMENT PROPERTY
When the conditions of closing have been met, Exchange Inc. will deliver the exchange proceeds to the settlement agent to acquire the replacement property. The seller will convey the replacement property directly to you. This conveyance will represent a purchase from the seller by Exchange Inc. and a transfer to you in completion of the exchange. Remember that, to qualify for tax-deferred treatment, this closing must occur by the earlier of 180 days from the date of closing on your first relinquished property or the due date of filing your federal income tax return for the year in which your first relinquished property was sold, including extensions.
8.
KEEPING YOU INFORMED AND FINAL RECONCILIATION
Prior to or at the conclusion of your exchange, Exchange Inc. will provide you with a copy of your
exchange documents, including a statement reflecting the receipt and disbursement of all exchange funds. With this information, you and your tax advisor will complete Form 8824 to be filed with your federal income tax return, as well as any state forms required to report the transaction as an exchange.