Help!! Trying research a 1031 exchange.

[Stord Jacob]

So am literally in the beginning stages of a 1031 exchange, and i came across something that mention that I have 45 days to identify a property and 180 days to close. My question is this: how do they define “identify” ? What if I locate a property, but the deal falls apart during those 45 days for whatever reason?

[Dave Foster]

@Stord Jacob, from  the day you close the sale you have 45 days to identify your potential replacement properties.  It has to be in writing, be specific addresses and most QIs will require that it be in their hands by midnight on day 45.

Until and through day 45 the list is fluid and can change at your whim. However after day 45 that list becomes set in stone and cannot be changed and you must close on one of the properties on your list in order to complete the exchange.  So the answer to your question of what happens if your list all falls through is that your exchange fails.  There are some ways to list more than one property and that ability is your fall back to the potential loss of a property.

Most Qualified intermediaries have a very specific protocol that they like you to follow.  When you say you are in the beginning stages, have you closed your sale already and is there a QI in place?  Because your QI must be in place prior to the closing of the sale or you cannot do a 1031.

We have a white paper we can forward to you that gives you a good road map of the process.  I've PMd you to provide it.