A 1031 Exchange allows taxpayers to defer taxes when selling investment property. The first step in completing an exchange is establishing a Qualified Intermediary (QI). You must do this before closing. It is essential to know the steps and responsibilities in completing 1031 exchanges. This guide to everyone’s role in a 1031 exchange will help you learn more.
It is safe to say that no two real estate transactions are the same. If you add a 1031 Exchange into the mix, it can get confusing. Below, we discuss who is responsible for ensuring the exchange’s success.
Here is a list of the QI, Closing Agent, and Taxpayer’s responsibilities in the exchange process:
Often, sellers don’t realize that a 1031 exchange is an option and need a QI to facilitate the exchange. The title agent can step in and become the hero for the client! Title agents realize that once a client closes on the property, they missed the tax-saving 1031 exchange opportunity. The title agent also knows that a QI is required for this exchange.
For additional and more detailed information about 1031 exchanges, call
Granite Exchange today at 800-899-6959.
Our Certified Exchange Specialists® (CES®) can explain the process and guide you through every step of the exchange to ensure that the exchange is done properly.
We are proud to have long-standing relationships with the intermediary community and have a designated team supporting relationships with escrow officers, lawyers, accountants, tax advisors, investment consultants and corporate finance professionals.