What is a Reverse Exchange?
The build-to-suit exchange, also referred to as a construction or improvement exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction, renovations or new improvements to the Replacement Property.
In a simultaneous exchange, the old Relinquished Property and the new Replacement Property are transferred concurrently.
Some business or investment assets, such as a hotel or farm, consist of both real and personal property.
The most common exchange structure is the delayed “forward” exchange in which the Relinquished Property is sold, the proceeds (“Exchange Funds”) are delivered to the Qualified Intermediary, and are subsequently used to acquire Replacement Property from a third party seller.