DO NOT plan to sell and invest the proceeds in property you already own. Funds applied toward property already owned purchase goods and services , not like-kind property.
DO attempt to sell before you purchase. Occasionally Exchangers find the ideal replacement property before a buyer is found for the relinquished property. If this situation occurs, a
reverse exchange (buying before selling) is the only option available. Exchangers should be aware they are considered a more aggressive exchange variation and they are considerably more costly. The Q.I. must take title to both properties and therefore is more exposed to liability. There is a double straight up swap escrow that must take place and the fee is usually calculated by adding both sales prices, and finding a closer experienced in that type of escrow may be a challenge. Additionally, there will be supplemental property tax bills, filing fees, state entity fees, dissolution fees, none of which occur in a delayed exchange.
DO NOT
dissolve partnerships or change the manner of holding title during the exchange. A change in the Exchanger's legal relationship with the property may jeopardize the exchange.
