your real estate agent and escrow or closing agent that you will be completing a 1031 Exchange.
with an assignable contract. This is becoming standard and most real estate contracts already include a cooperation clause. If not, consider inserting the sample language below.
an offer on your property, complete the online 1031 Exchange form with your name and all information not previously provided.
if you plan to:
- withdraw cash from your sale proceeds
- change the name on title between your sale and purchase (see basic title requirements and avoiding title requirement issues)
- close on the purchase of your replacement property within three days of closing on the sale of your relinquished property (possible three-day lead time and $100 fee)
- close on the purchase of your replacement property before closing on the sale of your relinquished property. This is a reverse exchange and, in addition to our usual exchange fee, it costs between $7,000 and $10,000 plus a state-specific entity set up fee and can require two or more weeks lead time.
- carry-back a note for the buyer in your 1031 Exchange (three-day lead time and $1500 fee)
- use any of your proceeds to perform construction/improvements on your replacement property. This is considered a reverse improvement exchange and, in addition to our usual exchange fee, it costs between $7,000 and $10,000 plus a state-specific entity set up fee and can require two or more weeks lead time.
- consolidate multiple properties into one purchase
- separate one sale into multiple purchases
on our communication with your title company/closing agent requesting a copy of your contract and title commitment.
of the requested documents from your title company/closing agent, our operations team at Exchange Resource Group will prepare:
a copy of these when they are sent to your closing agent and may review them either prior to the closing or at the closing table.
a final review of the closing/settlement statement for potential taxable items or other issues with your legal and tax advisors prior to closing.
be instructed to include our fee on the settlement statement and will pay us directly from the sale.
watch for an email from “Automated Wire Notification DoNotReply@fortispb.com” with a subject line of “Wire In Notification”. This is notice from Fortis Private Bank confirming the amount of funds that have been wired into the dual signatory exchange account established for your transaction. NOTE: Follow up questions regarding the amount and timing of deposits should be directed to your closing agent.
