1031 Exchanging in Orange County- Step Three - The 180-Day Rule

You as an exchangor, must buy a replacement property for the one that you sold, within 180 days from the close of escrow on the sold propery.

And, the property that you buy, must be one of the ones that was on your list of identified properties.

On close of escrow, you will be paid by the qualified intermediary that you have been using, often called a 1031 accommodator, who has been holding onto your money since you divested yourself of the relinquished first property.

Note that for a 1031 to take place, YOU cannot have control of the proceeds from the sale. The Qualified Intermediary, then, acts like an escrow firm for you, your buyer, those involved in your purchase, and for the IRS in a way, too.

Debbie Ferrari, EMS, CE, e-PRO, RRS, (R), Vice President, National Council of Exchangors, with Thom Bohan, 2006 NCE President. NCE members bear the designation of Equity Marketing Specialist or “EMS” after achieving a high level of education in real estate marketing, real estate counseling, 1031 real estate taxation, real estate financing, 1031 real estate management, and real estate 1031 property exchange as determined by the National Council of Exchangors.