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An Exchange Timeline …
Phase II: Purchase of the New (Replacement Property)
A. Identification Stage
- You have exactly 45 days (including Sundays and holidays) from the closing of the old property to identify a list of possible replacement properties and 180 days to purchase one or more of those properties.
- From the time you decide to do an exchange, you should be looking for your new property. If you haven’t started looking yet, you must begin earnestly seeking new properties NOW.
- For an exchange to be 100% tax deferred, you must acquire new property that is of equal or greater value than the old property; you must also spend all of the net proceeds from the old property in purchasing your new property.
- Olympic Exchange Accommodators, LLC will send you a notice containing the original closing date, the expiration date of the 45-day identification period, the expiration date of the 180-day purchase closing date, confirmation of the amount we received from your closing on the old property, and a form by which you notify us of the locations of potential new properties.
- You must mail or fax to Olympic Exchange Accommodators, LLC the property identification form before midnight of the 45th day from the closing of the old property.
B. Contract Stage
- Negotiate and sign your contract as buyer on the new property.
- Include language in the contract to establish your intent to do a tax deferred exchange:
“Buyer intends to do a 1031 Exchange an seller agrees to cooperate with buyer regarding the exchange at no additional cost to seller and no delay to the closing”.
- Identify a title company or closing agent to handle the closing of the transaction.
C. Closing Stage
- Call Olympic Exchange Accommodators, LLC when you have a signed contract to buy. Information we need includes the phone number, name, and reference number for your closing agent or title company, a copy of your contract and the purchase price.
- Let Olympic Exchange Accommodators, LLCknow if you need an earnest money deposit from your exchange account.
- Olympic Exchange Accommodators, LLC will wire or deliver to closing the funds necessary to close on your purchase. Olympic Exchange Accommodators, LLC will contact the title company or closing agent with the necessary documents. If possible, a representative of Olympic Exchange Accommodators, LLC will be present at closing to obtain signatures on documents.
- Olympic Exchange Accommodators, LLC's Exchange Tracker packet provides a final letter and an accounting of the funds held, interest calculations and the 1099 IRS form required for tax purposes.
Olympic Exchange Accommodators, LLC makes every effort to simplify the 1031 process. We complete all the necessary documents and tax requirements giving you the confidence that your exchange has been completed correctly. We know you will appreciate our service. We specialize in customer satisfaction.
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