You will have 45 days from the closing of the relinquished property to identify the replacement property.
From the time you decide to do an exchange, you should be looking for the replacement property. Therefore, if you haven’t started yet, you should be earnestly looking for the replacement property.
For an exchange to be 100% tax deferred, you must acquire replacement property that is of equal or greater value and spend all of the net proceeds from the relinquished property.
API will forward to you notification of the closing date
45th date to identify property
180th closing date, and
conformation of the receipt funds
See the Replacement Property Identification Letter in the Exchange Agreement for the rules on how to identify your replacement property.
Mail or fax to API the Replacement Property Identification Letter with the property(ies) identified before midnight of the 45th date from the closing of the PHASE I property.
Negotiate and sign your contract as BUYER.
Again, you are not obligated, but it would be appreciated if you would select an Affiliate Title Company/Closing Agent to handle the closing of the transaction. Call API if you need a referral.
Call API when you have a signed contract.
Information we will Need:
Phone number and any reference number for your closing agent/title company.
If you need an earnest money deposit from the Qualified Exchange Account (QEA).
API will contract the closing agent and prepare the Addenda to the Exchange Agreement and the Withdrawal Authorization. ´ Original Addenda and Withdrawal Authorization will be delivered to closing agent.
Copies of the Addenda and Withdrawal Authorization will be forwarded to you for your review.
Closing agents will obtain signatures on the Addenda and the Withdrawal Authorization along with any other necessary documentation.
After all parties have signed and upon the closing agent’s faxing the Withdrawal Authorization, the exchange funds will be wired into the closing agent’s account.