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1031 Exchange
Resources

Internal Revenue Code Section 1031 is one of the single greatest wealth building tools available to the real estate investor.

Realtor "To Do" List 

Four Key Duties for Agents Assisting with a 1031 Exchange

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  1. Inform Your Client

    Let your client know that a 1031 Exchange may apply to any business or investment property sale, including owner-occupied listings with an investment component (e.g., a home with a rental unit or farmland).


    Do not provide tax or legal advice. Encourage your client to consult their CPA or attorney.
     

  2. Include 1031 Language in the Contract

    Although not legally required, it's good business practice to add the proper 1031 Exchange clause to the Purchase and Sale Agreement or include it as an addendum.  
     

  3. Open the Exchange Account Before Closing

    The exchange account must be opened before escrow closes. You or your client can open the account by calling Asset Exchange Company at 877.471.1031.
     

  4. Assist in Finding Replacement Property

    Remember—your client has strict IRS deadlines to identify and close on replacement property. Begin the search as early as possible.

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