Delayed 1031 Exchange

Sell your relinquished property first, hold exchange proceeds with a qualified intermediary, and close on replacement property within 180 days.

Our Nationwide Delayed 1031 Exchange Services

Delayed 1031 Exchange Coordination from Sale to Replacement Closing

Delayed Exchange Agreement Preparation

Secure Exchange Proceeds Handling

45-Day Identification Support

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.

Delayed 1031 Exchange Support Structured Around Your Timeline

Replacement Property Closing Coordination

Title, Escrow, CPA, and Attorney Coordination

180-Day Exchange Timeline Tracking

Every delayed 1031 exchange depends on a different mix of timing, financial, and tax factors. A long-term landlord exchanging into commercial space has different timing than a developer rolling into a build-to-suit, which is different from an investor consolidating multiple relinquished properties into a single replacement. Universal Pacific 1031 structures the delayed exchange around your facts and coordinates with your CPA and attorney on basis, boot, depreciation recapture, and entity-level questions. Tax and legal consequences should be reviewed with your CPA or attorney before closing.

How a Delayed 1031 Exchange Works in Practice

A Delayed 1031 Exchange, also called a forward exchange, is the standard 1031 structure. The investor sells the relinquished property first, the qualified intermediary holds the exchange proceeds in a segregated trust account, replacement property is identified in writing within 45 days, and the replacement closes within 180 days of the relinquished sale.

Universal Pacific 1031 prepares the exchange documents and assignment notices, accepts assignment of the sale contract, receives and holds the exchange proceeds, coordinates with title and escrow at both closings, tracks the 45-day identification deadline and 180-day exchange deadline, and supports the documentation needed for IRS Form 8824. Tax and legal consequences should be reviewed with your CPA, tax advisor, or attorney before closing. Learn more about the 1031 exchange timeline for context on how the deadlines apply.

Documentation and Deadline Support Under IRS Section 1031

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.

Coordination with Title, Escrow, CPA, and Attorney

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 a Delayed 1031 Exchange Works

45-Day Identification Reporting

Dedicated Delayed Exchange Coordinator

Closing and Funds Reconciliation

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 a Delayed 1031 Exchange?

A Delayed 1031 Exchange (also called a forward exchange) is the standard 1031 exchange structure. The investor sells the relinquished property first, a qualified intermediary holds the exchange proceeds in a segregated trust account, replacement property is identified in writing within 45 days, and the replacement purchase closes within 180 days of the relinquished sale. This structure allows capital gains tax deferral under IRS Section 1031.

How is a delayed exchange different from a simultaneous exchange?

A simultaneous exchange closes the relinquished sale and the replacement purchase on the same day. A delayed (forward) exchange separates them by up to 180 days, giving the investor time to find and close the replacement after the sale proceeds. The delayed structure is the most common form of 1031 exchange because simultaneous closings are difficult to coordinate.

What are the 45-day and 180-day deadlines?

Two clock periods run from the day the relinquished property closes. Within 45 calendar days, you must identify the replacement property in writing under IRS rules. Within 180 calendar days (or the federal tax return due date for the year of the sale, whichever is earlier), the replacement property purchase must close. Missing either deadline can jeopardize tax deferral and may make the transaction taxable. Review the impact with your CPA or tax advisor.

When should I contact a qualified intermediary?

Contact a qualified intermediary before signing the closing documents on the relinquished property. The exchange agreement and assignment notices must be in place at the time of sale, so most investors engage the QI seven to fourteen business days before the scheduled closing. Contact Universal Pacific 1031 as soon as the relinquished property is in escrow so the documents and coordination can be prepared on time.

How much does a delayed 1031 exchange cost?

Standard delayed exchange fees run $850 to $1,500 in qualified intermediary charges for a single relinquished and single replacement property. Multi-property structures or atypical coordination add to the fee. Universal Pacific 1031 uses flat-fee pricing with no junk charges. The final quote is set after a free consultation.

Can I exchange into multiple replacement properties?

Yes. You can identify up to three replacement properties without regard to value (the three-property rule), or more under the 200% rule or the 95% rule. Combining proceeds from one relinquished sale into multiple replacements is allowed if the total value identified meets one of these IRS rules. The structure should be reviewed with your CPA before identification.

Can I buy replacement property in another state?

Yes. The like-kind rule restricts the type of property (investment or business-use real estate), not the location. If the relinquished property is in California and the replacement is in another state, California’s claw-back rule applies and FTB Form 3840 must be filed annually until the deferred gain is recognized. State reporting rules may apply elsewhere too, so confirm details with your CPA or tax advisor.

What happens if I receive or control the sale proceeds?

If the taxpayer receives or controls the sale proceeds, it may create constructive receipt and disqualify the exchange. The qualified intermediary must hold the funds in a segregated trust account and coordinate disbursement to the replacement property closing. Constructive receipt includes direct access to the funds, the right to direct them, or using them as collateral. Discuss any unusual situation with your CPA before the closing.