EZ1031 EXCHANGE

Straightforward Exchange

Step 1    Call Ilana of EZ1031 Exchange Inc. and express your interest in using 1031 Exchange for your property investment. You need a Qualified Intermediary to oversee the 1031 Exchange process and draw up the exchange contract. We will be working closely with your Attorney, Representative, Accountant, or Escrow Officer to ensure that the exchange meets the IRC Section 1031 requirements.

Step 2    Enter into Purchase Contract with the Buyer.        The “Relinquished Property” Purchase Contract should contain a “cooperation clause” obligating the Buyer to cooperate in structuring the transaction as a tax-deferred exchange.

Step 3 Provide us the required documents for the Exchange.   EZ1031 Exchange Inc. will need the Preliminary Report, Escrow Instructions, and Property Purchase Contract to prepare the Exchange documents. We will provide you or your Escrow Officer the Exchange Agreement, Exchange Funds Disclaimer, Assignment and Amendment to Escrow Instructions Substitution of the Buyer, and the Wire Instructions for signature(s) where required. Fax us back the signed documents and mail the original. All of these documents must be signed and dated before or as of the date of closing. Original must be mailed back to us.

Step 4    Close the Relinquished Property. When all conditions have been met, the Relinquished Property will be passed on to the Buyer. While the property will be passed on from you to the Buyer, it will also represent a sale from EZ1031 Exchange Inc. to the Buyer for cash. The cash proceeds from the sale of the relinquished property must be delivered directly to EZ1031 Exchange Inc. At no time should you be in actual receipt of the cash proceeds.

Step 5    Receive an Identification Replacement Property Document from us. We will send you a letter of confirmation that the funds from the sale have been wired to us. You will be advised that you have a maximum of forty five (45) days, from the close of escrow, to find and register with us your potential exchanged properties. Fax also a copy of the completed form at 1-866-369-4704. The original should be mailed to us “Certified Mail” on or before the stated deadline.

Step 6    Enter into Purchase Contract with the Seller.   After you have identified suitable “like-kind” replacement properties and made the decision as to which properties you need to buy, you will enter into Purchase Contract with the Seller. The Contract should contain the “cooperation clause” obligating the Seller to cooperate with you in completing your tax-deferred exchange.

Step 7    Provide us the required documents for the Exchange. EZ1031 Exchange Inc. will need the Preliminary Report, Escrow Instructions, and Property Purchase Contract  of the Replacement Property to prepare the Exchange documents. We will provide you or your Escrow Officer the Assignment and Amendment to Escrow Instructions Substitution of the Buyer Form and the Estimated Closing Exchange Statement for signature. The Amendment will basically state that you will assign your rights as Buyer to us. All of these documents must be signed before or as of the date of closing.

Step 8    Close the Replacement Property.   When the conditions of closing have been met, EZ1031 Exchange Inc. will wire the funds to the designated Escrow Company to acquire the Replacement Property. The Seller will pass on the Replacement Property to you. Do take note that to qualify for the tax-deferred exchange, the closing must occur earlier of 180 days from the date of closing of your Relinquished Property sale; or it can be the due date of filing your federal income tax return for the year in which your first relinquished property was sold, including extension.

Step 9    Closing of the Exchange Transaction.   Prior to the conclusion of the Exchange, EZ1031 Exchange Inc. will provide you with a copy of the exchange documents including a statement receipt of all funds. Together with your Tax Advisor / Accountant, you will complete Form 8824. This will be filed with your federal income tax return, as well as any state forms required to report the transaction as an exchange.

Call our office today at (888) 964-3637! We will walk you through the process, answer your questions and get you started on your 1031 exchange right away!