Closing today and haven’t set up your 1031 exchange?
A last-minute exchange may still be possible, depending on the status of your sale. Contact onezero3one immediately so we can review the situation with your closing agent.
Ask your closing agent whether closing and disbursement can be paused while the exchange requirements are reviewed. Submitting a request does not establish an exchange or authorize closing.
The hour before closing
01 Triage
Where are you in the closing process?
Choose the closest description. This is guidance for a conversation, not a decision about whether an exchange is still available. That depends on the documents and needs a review.
1 Closing soon; the sale is not completed
This is the situation with the most room to act. For a deferred exchange through a qualified intermediary, the exchange agreement, the assignment of your rights in the sale contract, and written notice of that assignment to all parties to the contract need to be in place on or before the transfer, and the sale proceeds need to be paid to the intermediary instead of to you.
Call now, and tell your closing agent that you want an exchange reviewed before the sale completes.
Do not accept a payout of the sale proceeds to you or to anyone acting for you.
Have the sale contract and the closing agent’s details to hand for the call.
2 Documents signed; the closing status is uncertain
Signing documents does not by itself tell you where the transaction stands. The 1031 periods run from the date the property is disposed of, and what matters is whether the sale has been completed and whether you have received, or could draw on, the proceeds. Find that out from the closing agent before anything else happens.
Ask the closing agent: has the deed been delivered or recorded? Have any funds been disbursed, wired or credited to you?
Ask whether completion and disbursement can be paused while an exchange is reviewed.
Call with the closing agent available, so the facts can be checked directly.
3 The sale is completed or the proceeds were received
If the sale closed without an exchange arrangement in place, or the proceeds were paid to you or made available to you, the transaction is generally treated as a sale. A completed ordinary sale generally cannot be converted into a deferred exchange afterwards, and buying another property later does not change that. Please speak with your tax advisor about how the sale will be reported.
If you are not sure the sale has actually completed, or where the money is, confirm with the closing agent first.
If there is genuine doubt about the status, call and we will go through the facts with you. We cannot undo a completed sale.
What decides whether an exchange is still possible
Signing is not the whole story. The periods run from the date the property is disposed of, and the completion of the sale and the handling of the proceeds decide the status, not the signatures alone. Treas. Reg. §1.1031(k)-1(b)(2)(iv)
“Not in my bank account” is not the test. Money credited to you, set apart for you or otherwise made available so you can draw on it is constructively received, and money received by your agent is treated as received by you. §1.1031(k)-1(f)(2)
Actual or constructive receipt matters. Receiving the proceeds, or the right to them, before you receive replacement property turns the transaction into a sale to that extent. §1.1031(k)-1(f)(1)
Ordinary escrow is not an exchange. The safe harbors require a written agreement that expressly limits your rights to receive, pledge, borrow or otherwise benefit from the funds. A routine closing escrow does not contain those limits. §1.1031(k)-1(g)(3), (g)(4), (g)(6)
No conversion after the fact. The assignment to the intermediary and notice to the other parties must happen on or before the transfer, and a sale followed by a purchase does not qualify. A completed ordinary sale generally cannot be converted retroactively. §1.1031(k)-1(a), (g)(4)(v)
The 45 days are not a grace period. The identification period begins on the transfer date and is for identifying replacement property in an exchange already in place. §1.1031(k)-1(b)(2)(i)
The property still has to qualify. Only real property held for productive use in a trade or business or for investment, and not held primarily for sale, qualifies. Use and other conditions need review. IRC §1031(a)
General information about federal tax rules, not tax or legal advice. onezero3one does not give tax or legal advice; your tax advisor or attorney should confirm how these rules apply to you.
02 What to do now
Four steps, in order.
Calm and quick beats fast and uncertain. Nothing here commits you to an exchange.
Tell your title, escrow or settlement agent that you want an exchange reviewed, and ask whether completion and disbursement can be paused meanwhile.
03
Gather the transaction documents
The sale contract, amendments and the other items listed below. No Social Security numbers or bank details are needed for the first call.
04
Let us assess timing and requirements before you proceed
We review what has happened and what would still be required, and tell you whether onezero3one can act, before anything is signed.
A message for your closing agent
I would like an urgent review of whether a 1031 exchange can still be arranged. Can we discuss pausing completion and disbursement while a qualified intermediary reviews the transaction with you?
03 What to have ready
Six things make the first call useful.
Have them to hand if you can. Missing one is not a reason to wait before calling.
Sale contract and any amendments
The seller’s exact legal name, as it appears on title
Closing date, time and time zone
The closing agent’s name, company, phone and email
Preliminary settlement statement, if available
Any exchange documents already prepared
Please do not send Social Security numbers, W-9 forms, bank account details or documents through this website. If documents are needed, we will tell you how to send them.
04 How onezero3one helps
A short sequence, handled with your closing agent.
onezero3one is a qualified intermediary. In an urgent file the work is the same as in any exchange, done in less time and only if the facts allow it.
01
Review
We look at where the sale stands, the timing, the parties and the property, and what would still have to happen before the transfer.
02
Acceptance and fee disclosure
We confirm whether onezero3one can act in this exchange, including whether any state requirements apply. The fee is set out in writing before you sign anything.
03
Documents and execution
We prepare the exchange agreement, the assignment of the sale contract and the notice to the buyer, for you to review with your advisors and sign.
04
Coordination with the closing agent
We send the closing agent the exchange instructions so the proceeds are paid to onezero3one, not to you, at closing.
Submitting a request, speaking with us or paying a fee does not by itself create a valid exchange. Qualified intermediary services are provided only under a signed written exchange agreement, and onezero3one does not give tax or legal advice or guarantee that an exchange will qualify.
Sometimes, if the sale has not yet closed. For an exchange through a qualified intermediary, the exchange agreement, the assignment of your rights in the sale contract to the intermediary, and written notice of that assignment to all parties to the contract have to be in place on or before the transfer, and the sale proceeds have to go to the intermediary rather than to you. Whether that can be done in the time left depends on the transaction, the closing agent and the documents, so it needs a review before closing proceeds.
I already signed documents. Is it too late?
Not necessarily. Signing is not the same as the transfer: the 1031 periods run from the date the property is disposed of, and what matters is whether the sale has been completed and whether you have received, or could draw on, the proceeds. Ask your closing agent right away whether the deed has been delivered or recorded and whether any funds have been disbursed or credited to you, and ask whether completion and disbursement can wait while an exchange is reviewed.
The money is still with the title company. Does that mean I qualify?
Not by itself. Under the regulations, money held by your agent is treated as received by you, and money is constructively received when it is credited to you, set apart for you or otherwise made available so you can draw on it. An ordinary closing escrow does not contain the written limits on your rights that the exchange safe harbors require. Whether the funds are in your bank account is not the test; your rights to them are.
Do I have 45 days after closing to set up the exchange?
No. The 45-day period is for identifying replacement property in an exchange that was already in place when the relinquished property transferred. It begins on the transfer date and is not a grace period for arranging an exchange after an ordinary sale.
Do I need to have replacement property selected?
No. Replacement property is identified in writing within 45 days after the transfer, and acquired within 180 days or by the due date of your tax return for the year of the transfer, including extensions, if that comes first. What has to exist before closing is the exchange arrangement, not the replacement property.
What documents should I have ready?
The sale contract and any amendments, the seller’s exact legal name as it appears on title, the closing date, time and time zone, the closing agent’s contact details, a preliminary settlement statement if you have one, and any exchange documents already prepared. Do not send Social Security numbers, bank details or documents through the website form.
Can my closing agent contact you directly?
Yes. Closing agents can call (844) 776-1031 or email info@onezero3one.com. It helps if the seller calls as well, because the exchange agreement is with the seller.
What happens outside your staffed hours?
Telephone hours are Monday to Friday, 9am to 6pm Eastern. Outside those hours a call may not be answered live, and a callback request may not be seen until telephone hours resume. Nothing is set up automatically. If your closing is before then, ask your closing agent whether completion and disbursement can wait until a review can take place.
06 Urgent review
Closing is close. Call first.
A phone call is the fastest way to start a review. If you cannot call now, send the short form and we will call you back.
Telephone(844) PRO-1031That is (844) 776-1031. Mon–Fri, 9am–6pm Eastern
