STEP 1...
Find an experienced professional QUALIFIED INTERMEDIARY to assist you with the exchange as early in the sale process as possible. Key points to consider in selecting a Qualified Intermediary are: the knowledgeable and experienced staff; the local assistance for your real estate agent, CPA and attorney; and of especially critical importance: the safety of your funds while held by the Qualified Intermediary. At a minimum, you should require the Qualified Intermediary to provide fidelity bond insurance coverage. Investment Property Exchange Services, Inc. has a written guarantee and a $100 million fidelity bond to secure the exchange funds.
 |
STEP 2...
Instruct your real estate agent to include an Exchange Cooperation Clause as an addendum to the purchase and sale agreement on the relinquished property (the property the Exchanger is selling to the buyer).
An example Exchange Cooperation Clause is:
Buyer hereby acknowledges that it is the intent of the Seller to effect an IRC 1031 tax deferred exchange which will not delay the closing or cause additional expense to the Buyer. The Sellers rights under this agreement may be assigned to Investment Property Exchange Services, Inc., a Qualified Intermediary, for the purpose of completing such an exchange. Buyer agrees to cooperate with the Seller and Investment Property Exchange Services, Inc. in a manner necessary to complete the exchange.
STEP 3...
Contact your Qualified Intermediary as soon as possible after escrow is opened or after entering into the purchase and sale agreement and advise them of your intent to do an exchange well in advance of the closing date. The Qualified Intermediary will draft the appropriate Exchange Agreement, Assignments and Exchange Closing Instructions that must be executed prior to closing on the property being sold.
STEP 4...
Start searching for acceptable replacement property immediately to insure that you can meet the strict time frame for the 45-day Identification Period.
 |
RealEstateColorado.Net, Inc. is available to assist Exchangers and their advisors with their exchange strategies. The Exchanger is always advised to discuss the intended exchange with their legal or tax advisor. RealEstateColorado.Net, Inc or it's Brokers cannot provide advice regarding specific tax consequences. Investors considering an IRC 1031 tax deferred exchange should seek the counsel of their accountant and attorney to obtain professional and legal advice.
Attention Landlords and Property Management Companies.... Post a Full WEB PAGE AD and POST up to 5 PHOTOS for FREE! of your Colorado investment property on one of the best resources on the internet for Colorado investors to find good quality tennets !
Colorado Homes For Rent
Search For FREE! "Use Your Mouse to Rent Your House" tm
Click on the link to our Secure Loan Server for a Colorado Home Loan
Breckenridge Real Estate
Blog
Search Breckenridge Real Estate News on Breckenridge Colorado homes with our Breckenridge Blog
For additional resources visit:
Send a Free Colorful Colorado Post Card
Search for Homes and Land in the Summit County MLS
Denver Real Estate
Breckenridge Colorado Real Estate
Aurora Colorado Real Estate
Colorado Homes for Rent Attention Landlords and Property Management Companies.... Post a Full WEB PAGE AD and POST up to 5 PHOTOS for FREE! of your Colorado investment property on one of the best resources on the internet for Colorado investors to find good quality tenants !
Search For FREE! "Use Your Mouse to Rent Your House" tm
Articles © Copyright 2005 by RealEstateColorado.net, Inc.
Top of Page
|
