|
|
Better
planning assures a good exchange!
Helping yourself or your real estate client plan for
an exchange will avoid unnecessary obstacles. Listed
below is an information check list to go over with
your client at or prior to any acceptance of an offer
by your client.
1. Determine the following:
- Ask if the Relinquished
Property is being sold at a loss. If so, a 1031
exchange is not necessary.
- Confirm that
the Relinquished Property being sold was held
as a rental or investment property & that your
clients intend to do the same with the Replacement
Property.
- Make sure that the title to
the Replacement Property will be held in the same
manner as title is held on the Relinquished Property.
- Find out if your
clients will need to use the sale proceeds from
the Relinquished Property to make either cosmetic
or structural improvements on the Replacement
Property. You may need to do a Construction Exchange.
Make sure that the contract has appropriate language
that allows it to be assigned to Bankers Escrow
Corporation at closing.
2.
Review the following questions with your client:
- Will your client
be using part of the proceeds to pay personal
debt?
- How is your client(s)
in title currently?
- Will your clients
be adding additional parties to the title on the
Replacement Property?
- Will all members
on title to the Relinquished Property be participating
in the exchange?
- Are your clients
selling any of their property to or intending
to buy property from a related party? There are
specific two year holding periods required.
- Do your clients
plan to offer seller financing on the sale of
the Relinquished Property? If so the note will
need to be in the name of Bankers Escrow Corp.
- Are your clients
aware of the various types of exchanges that may
meet their exchange objectives? Such as simultaneous,
delayed, construction or improvement and reverse
exchanges.
- What types of
personal property being sold with the relinquished
property? Does the contemplated Replacement Property
have similar personal property?
Bankers Escrow
Corporation personnel can be very helpful
in the early stages by discussing with you & your
clients on how the answers to the above questions
will determine the type of exchange. Our resources
include a CPAs, CESs (Certified Exchange Specialist)
and escrow officers who can explain the various exchange
types and assist your client in selecting the most
appropriate structure for their exchange.
ALWAYS suggest that your client should discuss 1031
exchanges with their own tax advisor prior to any
exchange activity! |
|
|
Bankers Escrow Corporation
Corporate Headquarters
44 Union Blvd. Suite 115
Lakewood, CO 80228
______________
Site Map
|
All
transactions are easy & convenient with very reasonable
fees. Professional same day service by experts including
CPA, attorney, lender, realtor, & escrow officers. Bonded &
Insured for your protection. |
|
|
|
BETTER BUSINESS