Reverse 1031 Exchange
Like all things, there are specific rules that govern reverse 1031 exchanges. First, the investor is required to use an accommodation titleholder (AT) in purchasing and parking the title for the original property or the replacement property. The AT can be used for this purpose for up to 180 days. The AT cannot be the person undertaking the exchange or any individual who has worked as an agent of the exchanger during the two-year period preceding the exchanger's present reverse exchange. This includes attorneys, investment bankers, real-estate brokers, and accountants. A written agreement must exist between the exchanger and the AT. This agreement must include language that identifies the AT as the beneficial owner of the parked or warehoused property. This agreement must include details concerning both the intent and obligations of the AT and the exchanger. The title of the original property or the replacement property must name the AT. In a reverse exchange, the exchanger has 45 days to identify the property to be relinquished and 180 days to complete the transaction. During this time, the exchanger may still lease or manage the parked property. This includes supervising construction. Furthermore, the exchanger is entitled to guarantee loans that are used to purchase the parked property during this period. At TM 1031 Exchange, we are committed to giving qualified investors access to appropriate properties. With extensive experience and keen market insight, we offer valuable tools and resources for finding the right property. If you have property to sell, we can help you to expose your property to qualified buyers as well. We will be happy to discuss your needs toll-free at 1-877-4TM-1031 or via e-mail here team@tm1031exchange.com.
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