The 1031 exchange needs to be set up BEFORE the close of escrow of the relinquished property. Once the account is set up, the exchange process. Below is a sample timeline demonstrating the different steps involved in the exchange process:
- Exchange Documents are sent out to investor for review (5-7 days before COE)
- Asset Exchange Company coordinates with Escrow to have investor sign exchange documents and have Escrow send Asset Exchange Company all sale proceeds
- Asset Exchange Company sends out a "receipt of funds" notification to investor
- Investor submits ID letter
- Investor submits request for Earnest Money Deposit Funds
- Investor submits "Replacement Property" Information Form
- Asset Exchange Company coordinates with Escrow on Replacement Property (obtains signatures, wires funds, etc.)