What is the First Step?

1. Always discuss a §1031 tax deferred exchange with your tax and/or legal advisor's.

2. Call Priority One Realty for a free consultation at any time and definitely before closing on the relinquished property. The following information is needed to begin preparing the exchange documents:
The name, address and telephone number of the Exchanger; and
The closer/escrow holder's name, address, telephone number and file number. We will prepare all necessary exchange documentation and will coordinate with the closer/escrow holder, the Exchanger's real estate agent/broker and his or her tax and/or legal advisor's.

3. Include verbiage establishing the intent to affect a §1031 tax deferred exchange in the Purchase and Sale Agreement. The following are examples:

SALE OF RELINQUISHED PROPERTY

"Buyer is aware that Seller intends to perform an IRC §1031 tax deferred exchange. Seller requests Buyer's cooperation in such an exchange and agrees to hold Buyer harmless from any and all claims, liabilities, costs, or delays in time resulting from such an exchange. Buyer agrees to an assignment of this contract to "Exchange Company" by the Seller."

PURCHASE OF REPLACEMENT PROPERTY

"Seller is aware that Buyer intends to perform an IRC §1031 tax deferred exchange. Buyer requests Seller's cooperation in such an exchange, and agrees to hold Seller harmless from any and all claims, liabilities, costs, or delays in time resulting from such an exchange. Seller agrees to an assignment of this contract to "Exchange Company" by the Buyer." This information is not intended to replace qualified legal and/or tax advisor's.

Each investment must be reviewed, each specific transaction is unique, your
legal and/or tax advisor are important to your strategy of 1031 Exchange.