Delayed 1031 Exchange

The Standard Forward Exchange — Sell First, Buy Replacement Within 180 Days

Our Nationwide Delayed 1031 Exchange Services

Full-Service Exchange Facilitation

Complete oversight

An easy and hassle-free exchange process

Advice from Tax specialists

Universal Pacific 1031 has facilitated 1031 exchanges as a qualified intermediary since 1989. Your QI prepares the exchange agreement, drafts the assignments of the relinquished and replacement property contracts, holds the sale proceeds in a separate trust account, coordinates the closing schedule with title and escrow, monitors the 45-day identification deadline, and prepares the IRS Form 8824 documentation. The IRS requires this independence — without a QI, the exchange is disqualified.

Customized for Your Investment Strategy

Custom strategies

Our personalized service solutions

Customized 1031 exchange solutions

Every 1031 exchange has different timing, financial, and tax considerations. A long-term landlord exchanging into commercial space is different from a developer doing a build-to-suit, which is different from an investor consolidating multiple properties into one. Universal Pacific 1031 tailors the exchange structure to your specific scenario, coordinating with your CPA and attorney on basis, boot, depreciation recapture, and entity-level concerns.

Delayed 1031 Exchange for Investors and Their Advisors

Our 1031 service for Title and Escrow Concierge is a tailored approach, acknowledging the different needs of your business that generic solutions cannot fulfil, so we provide comprehensive management of the 1031 exchange timeline and process – from the identifying potential replacement properties to making sure you meet all your compliance needs until the finalization of the transaction.

For title and escrow companies, 1031 exchanges are just one part of managing a sophisticated real estate market. By partnering with our concierge service, your company gains an ally with deep expertise in the 1031 exchange process, 1031 exchange timeline and a comprehensive understanding of the real estate market and IRS regulations.

Compliance with IRS Section 1031 Regulations

IRS Section 1031 has tight rules: the 45-day identification deadline, the 180-day completion deadline, the like-kind requirement, the reinvestment of full proceeds, the proper title-holding structure. A qualified intermediary keeps the exchange compliant by maintaining the chain of documentation the IRS expects on audit — exchange agreement, assignment notices, identification notices, closing statements, and Form 8824 support.

Coordinated Closings with Title and Escrow

Most 1031 failures happen at closing, not at structuring. Title companies and escrow officers don’t see exchanges often, and a small misstep on settlement statements or assignment language can break the safe harbor. Universal Pacific 1031 coordinates directly with the title and escrow team at each closing — providing the assignment notices, settlement-statement language, and funds-handling instructions that keep the exchange compliant.

How It Works

Tailored Reporting

Dedicated Account Management

Escrow Reconciliation Services

After your initial consultation, we provide a written timeline that aligns the relinquished closing, the 45-day identification deadline, and the 180-day replacement closing. You receive regular updates as each milestone approaches. At the end of the exchange, your CPA receives the documentation needed for Form 8824 — including all assignments, settlement statements, and the final disbursement reconciliation.

FAQ

What is the difference between a delayed and a simultaneous 1031 exchange?

A delayed (forward) exchange separates the sale of the relinquished property from the acquisition of the replacement by up to 180 days. A simultaneous exchange closes both transactions on the same day. The delayed structure is far more common because it accommodates normal real estate timelines.

How much does a delayed 1031 exchange cost?

A standard delayed exchange runs $850 to $1,500 in qualified intermediary fees. The cost depends on the complexity of the transaction, the number of replacement properties, and any coordination with attorneys, lenders, or out-of-state closing parties. Universal Pacific uses flat-rate pricing with no hidden fees disclosed upfront.

What happens if I miss the 45-day identification deadline?

The exchange fails. The capital gains tax on the relinquished property becomes due, and the deferral is lost. The 45-day deadline is firm — calendar days only, no extensions for weekends or holidays.

What happens if I miss the 180-day completion deadline?

Same outcome as missing the 45-day deadline — the exchange fails and the gain becomes taxable. The 180-day window can also be shortened by the federal tax return due date for the year of the sale. Filing a tax-return extension preserves the full 180 days.

Can I do a delayed exchange on multiple properties at once?

Yes. You can sell multiple relinquished properties into one exchange (combining proceeds toward a single replacement) or sell one property and identify multiple replacements. Both structures are common. The 45-day and 180-day deadlines apply to the entire exchange, measured from the closing of the first relinquished sale.

Does the replacement property have to be in the same state as the relinquished property?

No. The like-kind requirement only restricts the type of property, not the geography. If the relinquished property is in California and the replacement is in another state, the California claw-back rule applies and FTB Form 3840 is required annually until the deferred gain is recognized.

Can I use a delayed 1031 exchange for raw land or commercial property?

Yes. Raw land, commercial buildings, industrial property, multifamily, single-family rentals, and most types of investment real estate qualify as like-kind to any other type of investment real estate. The only restrictions are that both properties must be held for investment or business use.

How early should I engage a qualified intermediary?

Engage the QI before you sign the closing documents on the relinquished property — ideally 7 to 14 days before the scheduled closing date. The exchange agreement and assignments must be in place when the sale closes.

Can I touch the sale proceeds between the relinquished sale and the replacement closing?

No. Constructive receipt — direct access to the funds, the right to direct them, or use of them as collateral — disqualifies the exchange. The qualified intermediary must hold the funds in a segregated trust account.

What are the most important delayed 1031 exchange rules to follow?

Five rules are non-negotiable: identify replacement property in writing within 45 days, close on replacement within 180 days, use a qualified intermediary to hold the funds, reinvest the full proceeds at equal or greater value to defer the full gain, and report the exchange on IRS Form 8824.