Do I need intermediary for section 1031 exchange?

By | March 8th, 2019|Comments Off on Do I need intermediary for section 1031 exchange?
QuestionsCategory: 1031 exchangeDo I need intermediary for section 1031 exchange?
1 Answers
Xchange Expert Staff answered 11 months ago

Yes, you need intermediary for the 1031 exchange because according to the rules of 1031 exchange when the investor invests the property to buy the replacement property, in that case, the proceeds received from the relinquished property are kept with the qualified intermediary in an escrow account. When the replacement property is identified within the time limit of 180 days then this money is used to buy the replacement property- the qualified intermediary acts as both the buyer and seller during the whole process. If the investor touches the proceeds, then he/she disqualifies from the 1031 exchange.

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