Steps of an Exchange

When you realize you want to take advantage of a 1031 Exchange, be sure to communicate this to Cascade Exchange Services, Inc. (CES). We will work with your realtor, settlement agent, attorney and accountant to get the process started and completed.

When closed, the ownership of the relinquished (sale) property will transfer through CES to the Buyer, and proceeds are deposited with CES. This is typically called the “Phase 1″ or “Down Leg” of an exchange.

The closing date of the relinquished property is the beginning of the exchange period. From this date, the exchangor has 45 days to identify acceptable replacement property and 180 days to acquire the identified property (ies).

After locating replacement (purchase) property and signing a sales agreement, be sure to inform CES. CES will obtain information from the exchangor so that the exchange papers can be prepared and forwarded to the settlement agent. The exchange is completed when the funds are transferred to the settlement agent and the property purchased by CES is transferred to the exchangor. This is typically called the “Phase 2″ or “Up Leg” of an exchange.

There are numerous rules and considerations to keep in mind throughout these various phases, as well as different types of exchanges that can be done, and CES can help you understand these.