1031 Exchange Process
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We do not act as the accommodator. Team Aguilar is here to help you buy or sell real estate and will provide all the guidance needed to ensure you meet all requirements in order for the 1031 exchange to proceed as smoothly as possible.
Prior to initiating the exchange process, we strongly urge that the prospective exchangers get in touch with their respective legal, tax and/or financial advisors to make sure the 1031 exchange is compatible with their investment plans.
Step 1 – Plan for the Exchange
Contact Team Aguilar for an exchange consultation before executing any contracts for the listing and/or sale of a property. Place the relinquished property on the market and also include and exchange verbiage that is given to you. After that, begin the search for a suitable replacement property.
One thing to keep in mind is that the exchange timeline clock will not start until ownership transfer takes place. Only when the relinquished property is formally transferred to the new owners does the exchange timeline clock start to count down.
Step 2 – Sell the relinquished property
Contact Team Aguilar to open an exchange order after you are in the process of selling your property and before the settlement/closing has occurred. Team Aguilar will then prepare the exchange paperwork and send it to your closing agent for you to sign in conjunction with your other closing documents.
Step 3 – Buy a replacement property
Find a replacement property within 45 days, unless you purchase a property before the 45th day. You will be provided with the proper forms and the identification methods will be reviewed with you. Contact Team Aguilar upon acceptance of your purchase contract(s) for the replacement property/properties. After contacting us, we can help you coordinate all the final details to your exchange.