Delayed Exchange

This is the most common 1031 Exchange. Certain IRS requirements must be met to structure a delayed exchange. First, an investor must open an exchange with ERI prior to the close of escrow on the sale (relinquished) property. Second, via an executed assignment, ERI assumes the purchase contract and instructs the closing agent to deed the property from the investor to the buyer. The sale proceeds go directly to ERI to be held in a secure segregated bank account.

Within 45 days from the closing of the relinquished property, the investor has to identify the purchase (replacement) property. The investor may identify a maximum of three (3) replacement properties without regard to their fair market value or identify more than three (3) properties, however, the aggregate fair market value of said properties must not exceed 200% of the relinquished property value.

Within 180 days from the close of the relinquished property the investor has to close on the replacement property.

Delayed Exchange

Delayed Exchange

This is the most common 1031 Exchange. Certain IRS requirements must be met to structure a delayed exchange. First, an investor must open an exchange with ERI prior to the close of escrow on the sale (relinquished) property. Second, via an executed assignment, ERI assumes the purchase contract and instructs the closing agent to deed the property from the investor to the buyer. The sale proceeds go directly to ERI to be held in a secure segregated bank account.

Within 45 days from the closing of the relinquished property, the investor has to identify the purchase (replacement) property. The investor may identify a maximum of three (3) replacement properties without regard to their fair market value or identify more than three (3) properties, however, the aggregate fair market value of said properties must not exceed 200% of the relinquished property value.

Within 180 days from the close of the relinquished property the investor has to close on the replacement property.