As your qualified Intermediary, Next Phase 1031 Exchange, LLC can set up an escrow account on your behalf.

Relinquished property sale is negotiated and sales contract is then signed.

You close on your relinquished property. You then sign the traditional closing and 1031 exchange documents.

Relinquished property buyer signs the Notice of Assignment.

The IRS requires ALL parties to the exchange are notified in writing.

Exchange proceeds are wired to the escrow account in the name of the QI.

Without the QI, the exchange is considered invalid and suspectible to capital gain and income taxes. The exchange must be opened with the QI beforehand, as its role is to validate the exchange.

QI holds onto the funds while you identify potential replacement properties.

You now have 45 days to identify a replacement property.

A good QI will help you step-by-step during your 1031 exchange. If you miss the 45 day mark, the funds will be returned to your account, and the exchange will be considered invalid.

QI will release funds to purchase the replacement property or properties.

Use the remainder of the 180 days of the exchange to complete the acquisition of the new property.

The 1031 exchange period lasts exactly 180 days, including federal holidays and weekends.