Gold Canyon Arizona Homes and Real Estate in the East Phoenix Valley from The Benjamin Team and Benjamin Realty - Is it possible to purchase a replacement property before I sell the property that I own?

Is it possible to purchase a replacement property before I sell the property that I own?

Written by Administrator

Yes, this is known as a "reverse exchange." In a reverse 1031 exchange, the replacement property is acquired before the relinquished property is sold. Although the paperwork involved in a reverse exchanges is more complex than that of a standard 1031 exchange, the concepts are similar.

Within 5 days of the Qualified Intermediary taking title to the replacement property, the taxpayer will execute an agreement with their Qualified Intermediary which details the taxpayer's intention to meet IRS requirements regarding safe harbor reverse exchanges.

The Qualified Intermediary holds title to the replacement property for up to 180 days. During that period, title to the relinquished property must be transferred and the title to the replacement property taken by the taxpayer. The property to be relinquished must be identified in writing within 45 days from the date the Qualified Intermediary assumes the title to the replacement property.

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(This statement below is published in compliance with the FTC Mars requirements of 2011 for home owners and buyers involved with short sales - IMPORTANT NOTICE REGARDING SHORT-SALES - Benjamin Realty LLC is not associated with the government and our services are not approved by the government or your lender(s). Even if you accept this offer and use our service, your lender(s) may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.)