Recently, a client came to us with the following question:
"We have the property to be relinquished on the market and I am in the final steps to get the property I will be buying under contract. Do I need to send anything to the qualified intermediary before I sign the purchase agreement on the new property?"
Involving a Qualified Intermediary
Good question! No, the intermediary does not need anything prior to your signing the purchase agreements. Intermediaries typically get involved once a purchase agreements is signed and the title process is getting started (prior to closing).
Once you have them, send a PDF copy of the signed purchase agreements and customer application form completed (to the extent possible) to your intermediary to get started with the 1031 exchange process. You may also want to include our sample text into your purchase agreements, and let your title-closers know that you are doing a 1031 exchange.
Exchange Your Property
Commercial Partners Exchange Company works with taxpayers large and small on the exchanging of real estate under section 1031 of the Internal Revenue Code. With twenty years of experience under our belts, we can answer all of your questions, advise you on replacement properties, and prepare all of your needed documentation throughout the course of your exchange. Reach out to us today to learn more about our 1031 exchange services and get your exchange off the ground today. Our office is located in downtown Minneapolis, but we work with clients across the United States.
- Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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