A typical
tax deferred exchange is very similar to a taxable transaction except that prior
to closing on the property being sold, Fidelity National 1031 Exchange Services,
Inc. (FNX1031), as a Qualified Intermediary, is assigned into the Sale Contract.
FNX1031 sells the property to the buyer and transfers the proceeds safely into
a seperate exchange account. (The IRS stipulates the exchanger cannot be in actual
or constructive receipt of funds at any time during the exchange.) The exchange
period begins with the transfer of the first property providing the investor 45
days to identify, and a total of 180 days to close, on "like-kind" replacement
property. The exchange is completed when FNX1031 is assigned into the Purchase
Contract, utilizes the proceeds received to acquire the replacement property,
and instructs the closer to transfer ownership to the exchanger via direct deeding.
