An agent working with an investor conducting a 1031 exchange should make sure to perform the following four duties:
Inform the client that 1031 Exchange is an option on ANY business or investment listing, or any owner occupied listing that has an investment component (house with a farm, house with an in-law unit in the back). However, be careful not to give tax or legal advice! Recommend that your client talk to their legal and/or tax advisors about their specific situation.
Add the appropriate 1031 Exchange language to the Purchase and Sale agreement (or as an addendum).
Open an exchange account BEFORE the close of escrow. You can open the 1031 Exchange on behalf of your client, or your client can open the account directly. The account MUST be opened before the close of escrow. To open the account, call Asset Exchange Company at 877.471.1031
Find replacement property! Keep in mind your client is under a strict timeline to identify and acquire replacement property, so the sooner you start looking for property, the better.