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STEP 1:
If you want to see if exchanging is for you, the first step
should be to your accountant or tax professional. Know
exactly where you stand financially!!
STEP 2:
Contact a *REALTOR® with "exchanging experience",
who can procure a buyer for your property that is to be
"relinquished" (sold).
STEP 3:
After you and a buyer enter into a "Purchase and Sale"
agreement for your property, hire an "Intermediary" to
open the escrow, as well as handle ALL the paperwork
involved with the transaction. Ask your accountant, or
REALTOR® to refer you to a company if you are not
comfortable choosing or locating an Intermediary on your
own. Upon closing, ownership is going to transfer to the
Intermediary, and then to the buyer. The proceeds will
remain in the Intermediary's exchange account.
STEP 4:
A "replacement property" (the property you will buy),
MUST be identified within 45 days from the closing
of your "relinquished property". This must be done in
writing & delivered to the Intermediary within the specified time.
You may identify up to 3 "replacement properties" of ANY value
.. or .. 4 or more replacement properties whose total value does
not exceed 200% of the total value of the relinquished property.
STEP 5:
Again, enter into a "Purchase and Sale" agreement for your
"replacement property", and have the Intermediary open the
escrow, as well as handle ALL the paperwork involved with
the transaction.The closing of the "replacement property"
must be completed within 180 days from the closing
of your relinquished property. Like before, upon the closing,
ownership of the "replacement property" will transfer to the
Intermediary, and then to you.
STEP 6:
Smile when you see how much you've gained by exchanging,
rather than merely selling and buying. A working example is
on the next page! Discover the
POWER of Exchanging! |
