Select a company to serve as a qualified intermediary and enter into an exchange agreement. The exchange agreement must be signed before the sale of relinquished property.
After sale of the relinquished property, require sales proceeds be sent to the qualified intermediary pending the purchase of the replacement property.
Identify replacement property within 45 days of the sale of the relinquished property. After the 45 day identification period, only property identified as potential replacement property qualifies as replacement property.
Contract to purchase replacement property.
Notify the intermediary of the contract to purchase replacement property and provide information about the closing of the purchase.
Within 180 days of the date of sale of relinquished property, purchase replacement property, using exchange proceeds held by the intermediary. The 180 day purchase period runs concurrently with the identification period.