This is how the process goes if you’re the seller/exchanger:
List your property with an agent, making sure he or she knows you plan a 1031 exchange.
When you get an offer, your agent will include a counteroffer provision that states the “buyer agrees to cooperate with seller’s 1031 exchange.”
Open escrow, and then choose your accommodator.
Sign an exchange agreement with your accommodator through escrow along with the other customary escrow paperwork.
At the close of escrow, your proceeds will be transferred to your accommodator’s trust fund on your behalf and held there until you begin the process of buying your replacement property.
Here’s how the process goes to purchase the replacement property:
Negotiate a purchase agreement, including a provision that the seller will cooperate with the 1031 exchange.
Open escrow and have the purchase contract earnest money deposit transferred from the accommodator’s trust fund to the escrow or closing agent’s account.
Continue the purchase process normally, doing inspections, arranging financing, and so on.
At closing, the accommodator transfers the balance of the exchange funds to the escrow or closing agent, who then closes the transaction
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Listings.