1031 Exchange Guide & Checklist

 

1031 Exchange Guide


IMPORTANT REMINDERS & INFORMATION

Thank you for choosing Growth 1031, Inc. as your Qualified Intermediary (QI)!  As your exchange accommodator, we promise to provide you with clear guidance, and helpful information to ensure that you have a successful 1031 Exchange.

There are two phases to the exchange process.  Phase 1 handles the sale of your relinquished property and Phase 2 regards the purchase of your replacement property (or properties).  All documents requested in Phase 1 need to be completed before we can move to Phase 2.

Completion of Exchange Documents:

Exchange documents will be sent via Docusign for electronic signatures.  Please review and complete these documents as soon as possible. Should you have any questions during the signing process, please contact your assigned exchange officer.

Name on Title (Vesting Title):

It is imperative that the Name on Title from your Relinquished Property is carried through to your Replacement Property in the exact verbiage. Please consult with Growth 1031, Inc. should you decide to add a Buyer on your Replacement Property.

Timelines:

It is imperative that you are aware of your Deadlines at all times. It is your responsibility to identify replacement property and send the Replacement Property Identification (RPI) form back to the accommodator within the appropriate deadline. We as a company set reminders, but we always encourage that the Exchangor also set personal notifications. You will have 45 days from the Close of Escrow on your Relinquished Property to complete this document and ensure that Growth 1031, Inc. is in receipt of it. You will have 180 days from the Close of Escrow on your Relinquished Property to complete your 1031 Exchange, meaning you must close escrow on your Replacement Property within this time frame.

Replacement Property(ies):

To defer 100% of your capital gains taxes you will need to acquire real estate equal or greater in value to that of your relinquish property. If you plan to own less property when you acquire your replacement property please keep in mind that you will have to pay taxes on the amount that you purchase below your relinquish property value.

Rush Orders:

If escrow closes in less than five (5) business days from receiving the required/requested documents to generate the Exchange Agreement, the transaction is subject to a $300 rush fee. Transactions that require document preparation in less than 48 hours are also subject to the $300 rush fee.

Please notify the Qualified Intermediary immediately if:

  1. Exchangor intends to provide a loan to the buyer ("carryback note").

  2. Exchangor intends to receive cash from the transaction (must be noted on exchange agreement).

  3. Exchangor intends to make construction improvements as part of the 1031 exchange (a separate Exchange Agreement is required).

Disclaimer: Growth 1031, Inc. does not provide tax, legal or accounting advice.  You should consult your own tax, legal and accounting advisors before engaging in any transaction. Although Officers of Growth 1031 may be licensed attorneys or may have a Juris Doctor, Growth 1031 is not a law firm and does not provide legal advice.

We suggest that you print this checklist on the next page and mark off the items as you complete them during the exchange process.

Please contact us at info@growth1031.com or (619) 991-1031 with questions.


Growth 1031, Inc. is here to make your 1031 Exchange as smooth and as automated as possible. At the successful completion of your 1031 Exchange, you will receive an email from Growth, 1031, Inc. with a compressed zip file.

1031 Exchange Closing Zip File:

This will include the following documents:

  1. Fully Executed Exchange Agreement (EXA)

  2. Fully Executed Notice of Assignment (NOA)

  3. Fully Executed Certificate of Citizenship (COC)

  4. Fully Executed 593-C Form (593)

  5. Fully Executed Replacement Property Identification Form (RPI)

  6. Receipts of Funds (FR)

  7. Wire Transfer Confirmations

  8. Fully Executed Assignment, Acceptance and Notice of Replacement Property Contract (AANRP)

  9. Fully Executed Addendum to Escrow Instructions (AEI)

  10. Confirmation of Delivery of 593-C form (or any applicable forms) to FTB

  11. Growth 1031 Invoice

  12. Any Email correspondence deemed necessary in a pdf copy