Flowchart for §1031 Tax
Deferred Exchange (Delayed)
RELINQUISHED PROPERTY
Exchanger enters into a contract
(containing an exchange cooperation clause) to sell the Relinquished Property.
Exchanger requests (either directly
or through their closer, broker or attorney) Fidelity National 1031 Exchange
Services, Inc. (FNX1031) to act as Qualified Intermediary.
FNX1031 obtains:
A. Preliminary Report/Commitment
B. Sale Contract Agreement/Closing
Instructions
FNX1031 prepares:
A. Assignment of Seller's
position
B. Exchange Agreement
Exchanger signs exchange documentation.
FNX1031 closes on the sale of
the Relinquished Property instructing closer to prepare and record deed directly
from the Exchanger to the Buyer.
A. FNX1031 is reflected as
the seller and the Exchanger reviews and approves all closing documents.
B. Settlement agent wire transfers net proceeds to FNX1031 exchange account.
From the Relinquished Property
closing date, Exchanger has:
A. 45 days to identify Replacement
Property.
B. Total of 180 days (or the
tax filing date) to complete the exchange.
REPLACEMENT PROPERTY
Exchanger enters into a contract
(containing an exchange cooperation clause) to purchase the Replacement Property.
FNX1031 becomes the Buyer in
this transaction.
FNX1031 obtains copies of:
A. Preliminary Report/Commitment
B. Purchase Contract Agreement/Closing Instructions FNX1031 prepares:
C. Assignment of Buyer's
position
Exchanger signs exchange documentation.
FNX1031 closes on the purchase
of the Replacement Property and instructs closer to prepare and record deed
directly from the Seller to the Exchanger.
A. FNX1031 is reflected as
the Buyer and the Exchanger reviews and approves all closing documents.
B. FNX1031 wires proceeds from the exchange account to the settlement agent.
FNX1031 provides a detailed
accounting of funds held by FNX1031 to the Exchanger.