A build to suite or improvement exchange 1031 exchange can be used when a property owner wishes to make improvements to the replacement property utilizing the proceeds of the sale of the relinquished property. An improvement exchange requires the owner to ‘park’ a title to either the relinquished or replacement property with an Exchange Accommodation Title Holder (E.A.T.). The improvements must be identified within the 45-day identification period and title of the improved property must be passed to the owner within the 180-day exchange period.
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