Can you close all of your transactions on the same day in a 1031 exchange? That’s our topic of discussion for this article.
Closing Transactions on the Same Day
Yes, it is possible to close the relinquished property and multiple replacement properties all back-to-back on the same day…but it’s not recommended.
Generally, you space out the closings to allow time for the funds to transfer and to allow a little wiggle-room to account for unexpected delays.
What if the Buyer of the Relinquished Property Causes a Delay?
In this scenario, all of the other closings for the replacement properties would get pushed back, causing frustration and extra work for the other parties.
Murphy's law states that "anything that can go wrong will go wrong," so allow sufficient time to get each leg done.
It is a hot seller’s market and title companies, escrow officers and real estate people are all working hard to keep up with the high volume, which means there is a good possibility of an unforeseen problem at some point.
CPEC1031
If you’re considering a 1031 exchange of your property, it’s important to get ahead of things early in the process to avoid any potential complications. Contact CPEC1031, LLC today to learn more about the exchange process and how we can help. Our qualified intermediaries have been facilitating 1031 exchanges for over two decades. We can help guide you through the exchange process.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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