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Diamond certified companies are top rated and guaranteed

Why Trust Diamond Certified Exchange and Reverse Exchange Real Estate Services Rated Highest in Quality?

You are the customer. If your goal is to choose a real estate exchange and reverse exchanges company that will deliver high customer satisfaction and quality, you’ll feel confident in choosing a Diamond Certified exchange and reverse exchange real estate company. Each has been rated Highest in Quality in the most accurate ratings process anywhere. And you’re always backed by the Diamond Certified Performance Guarantee. Here’s why the Diamond Certified ratings and certification process will help you find a top-rated real estate exchange and reverse exchange company and is unparalleled in its accuracy, rigor and usefulness:

1) Accuracy: All research is performed by live telephone interviews that verify only real customers are surveyed, so you’ll never be fooled by fake reviews.

2) Statistical Reliability: A large random sample of past customers is surveyed on an ongoing basis so the research results you see truly reflect a Diamond Certified company’s top-rated status.

3) Full Disclosure: By clicking the name of a company above you’ll see the exact rating results in charts and read verbatim survey responses as well as researched articles on each qualified company.

4) Guaranteed: Your purchase is backed up with mediation and the Diamond Certified Performance Guarantee, so you can choose with confidence.

Click on the name of a Diamond Certified company above to read ratings results, researched articles and verbatim customer survey responses to help you make an informed decision.

More than 200,000 customers of local companies have been interviewed in live telephone calls, and only companies that score Highest in Quality in customer satisfaction–a 90+ on a 100 scale–as well as pass all of the credential-based ratings earn Diamond Certified. By requiring such a high score to qualify, the Diamond Certified program eliminates mediocre and poorly performing companies. Read detailed information about the ratings and certification process.

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DIAMOND CERTIFIED EXPERT CONTRIBUTORS IN THE Solano County – Real Estate – Exchange & Reverse Exchange Services CATEGORY

Ron Lee is a 39-year veteran of the real estate industry and a Diamond Certified broker associate with RE/MAX Gold. He can be reached at (707) 333-8308 or by email.

Ron Lee

diamond certified contributor profile and expert article

Ron Lee: An Early Involvement

By James Florence, Diamond Certified Resource Reporter

VALLEJO — Ron Lee got involved in real estate early in life—in fact, by the age of 20, he’d already bought and sold his first house. “As a young man, I read a book on how to buy a property with nothing down, and soon after, I bought my first house,” he recounts. “I fixed it up, rented it out for a year and sold it to the tenant for a substantial profit. This inspired me to get more involved in buying and selling houses, so I got my real estate license and I’ve been doing it ever since.”

Today, as a broker associate with RE/MAX Gold, Ron says his favorite part of his job is helping people achieve their dreams of home ownership. “I really enjoy working with first-time buyers. It’s all new to them, so there’s a lot of excitement and I have fun coaching them through the process. That said, I also have a fair amount of clients who are investors, and I enjoy that aspect as well.”

A resident of Vallejo (where he lives with his wife, Dorothea), Ron expresses his appreciation for the character of his North Bay locale. “I like the people, the climate and the proximity to the rest of the Bay Area. It’s big enough to keep things interesting but it still feels like a small town.”

Outside of work, Ron enjoys a variety of active pastimes, whether in the air, on the ground or in the water. “I’m a paraglider pilot and a motorcyclist, and I pursue both of those activities on a regular basis,” he says. “I’m the kind of person who enjoys quiet, peaceful moments, and I usually get those while I’m flying or taking the back roads on my bike. I also own a yacht, which is great for getting away, but it’s also good for cultivating business.”

In regard to his professional career, Ron emphasizes the importance of having a long-term impact. “When I work with clients, I always try to counsel them in how to invest wisely and focus on the long term,” he explains. “I think that’s partially why I get so much repeat business—I even have clients whose grandchildren I’m now working with, so it has certainly brought me long-term rewards as well.”

When asked what his future retirement might look like, Ron says he plans to stay busy. “I don’t think I’ll ever fully stop doing what I’m doing. I can see myself taking longer weekends, but I really enjoy my work. Plus, it keeps me busy, so I don’t get bored.”

Ask Me Anything!

Q: What’s your favorite local restaurant?
A: Zio Fraedo’s in Vallejo.

Q: If you could time travel, would you go to the past or the future?
A: The future. I’m just curious to see what’s going to happen next.

Q: Music or talk-radio?
A: Neither—I’m a quiet time kind of guy.

Q: How do you like your eggs?
A: Over easy.

Q: What was your favorite toy as a child?
A: My Tonka truck.

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How to Buy Additional Time for a 1031 Exchange

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VALLEJO — If you’re planning to upgrade from one investment property to another, you’ll naturally want to retain as much of your original profit as possible. The problem is capital gains taxes can really put a dent in your bottom line.… Read more

Strategy for Winning a Bidding War

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VALLEJO — As a buyer, your primary goal is to find a house you love. However, when you do finally find that special property, odds are someone else is going to love it as well, which means you’re likely to find… Read more

Expert Video Tip

Video: Improving Your Bidding Position

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Complete Video Transcription:

VALLEJO — Host, Sarah Rutan: If you find yourself in a bidding war for a real estate property, one tactic may be able to give you a… Read more

SELECTED PHOTOS FROM THESE TOP RATED COMPANIES

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INDUSTRY INFORMATION AND RESEARCHED ARTICLES BY THE DIAMOND CERTIFIED RESOURCE

INDUSTRY INFORMATION - Solano County – Real Estate – Exchange & Reverse Exchange Services

personal property
real estate lots
residential homes
commercial real estate investments
ocean-front properties
farm acreage
business real estate properties
real estate trade property
investment property
real estate property
industrial properties
vacation properties

international real estate exchanges
real property exchange
real estate exchange services
reverse exchange services
real estate capital gains tax service
property exchanges
like-kind real estate exchanges
private exchange real estate
real estate swap
real estate trades
mortgage exchanges
deferred exchanges

Allendale
Benicia
Birds Landing
Bucktown
Collinsville
Cordelia
Dixon
Elmira
Fairfield
Green Valley
Liberty Farms
Maine Prairie
Mare Island
Nut Tree
Rio Vista
Scandia
Suisun City
Travis Air Force Base
Vacaville
Vallejo

94510
94512
94533
94534
94535
94571
94585
94589
94590
94591
94592
95620
95625
95687
95688
95696

Know What You Want
Research These Questions Before Hiring an Exchange & Reverse Exchange Real Estate Service Company in Solano County

You should consider several different factors before choosing an exchange & reverse exchange real estate service company in Solano County. You want to find a exchange & reverse exchange real estate service company that will best meet your needs. For this reason, you should write down everything that you’re looking for before you begin your research. Consider the following questions before making a final choice regarding a exchange & reverse exchange real estate service company.

  1. Do I want a Diamond Certified company that is rated best in quality and backed by the Diamond Certified Performance Guarantee?
  2. What professional and personal characteristics would I like my Solano County exchange & reverse exchange real estate service company to have? (These may include good communication skills, honesty, reliability, etc.)
  3. When is the best time for me to proceed with the reverse exchange?
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What To Ask In Person
Questions to Consider When Speaking in Person with an Exchange & Reverse Exchange Real Estate Service Company in Solano County

The next step in the process of hiring an exchange & reverse exchange real estate service company in Solano County is to interview your first few options so that you can narrow your options down to the best exchange & reverse exchange real estate service company for you. Consider asking these questions.

  1. Can I get references from you last five deals?
  2. Are there any additional costs to have my property transferred during a reverse exchange?
  3. What time limits need to be followed in order to successfully accomplish a reverse exchange?
  4. What sets you apart from other exchange & reverse exchange real estate service companies in Solano County, including the larger cities of Vallejo, Fairfield, Vacaville, Suisun City, Benicia, Dixon, and Rio Vista ?
  5. What if I am unhappy with your service? Do you offer a guarantee?
  6. Will I have to pay supplemental taxes for the period that you hold the title to my property while facilitating the reverse exchange?
  7. Has a client ever filed a complaint against you?
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  • What To Ask References
    Questions to Consider When Speaking to Previous Customers of an Exchange & Reverse Exchange Real Estate Service Company in Solano County

    It’s advantageous to choose a Diamond Certified exchange & reverse exchange real estate service company because all certified companies have passed an in-depth ratings process that most other companies can’t pass.

    If you want quality from a exchange & reverse exchange real estate service company in Solano County and the greater Bay Area, you can have confidence choosing a Diamond Certified company. Diamond Certified reports are available online for all certified companies. And you’ll never be fooled by fake reviews. That’s because all research is performed in live telephone interviews of actual customers.

    If you can’t find a Diamond Certified exchange & reverse exchange real estate service company within close proximity, you’ll have to do some research on your own. If you do, it’s wise to call some references provided by your exchange & reverse exchange real estate service company.

    Remember, though, that references provided to you by the exchange & reverse exchange real estate service company are not equal in value to the large random sample of customers surveyed during the Diamond Certified ratings process. That’s because references given to customers from companies are cherry-picked instead of randomly selected from all their customers. So the contractors will likely give you a few customers to call that they know are satisfied.

    If you do phone references on your own, specifically ask for a list of the company’s 10 most recent customers. This will help avoid them giving you the names of only customers they know were satisfied.

    1. Would you recommend this exchange & reverse exchange real estate service company to your family and friends?
    2. Was this exchange & reverse exchange real estate service company respectful of your time?
    3. If you need a exchange & reverse exchange real estate service company in the future, will you consider hiring this company?
    4. Did you feel the exchange & reverse exchange real estate service company was working with your best interest in mind?
    5. Was the exchange & reverse exchange real estate service company helpful in guiding you through the process?
    6. When the process was complete, were you satisfied with the exchange & reverse exchange real estate service company?
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  • Review Your Options
    Options to Think About Regarding a Solano County Exchange & Reverse Exchange Real Estate Service Company

    The Diamond Certified symbol has been awarded to companies that scored Highest in Quality in an accurate ratings process.

    Before deciding on the best exchange & reverse exchange real estate service company in Solano County for you, it’s important to consider the following questions.

    1. Do I trust my exchange & reverse exchange real estate service company of choice in Solano County, including the smaller cities of Birds Landing, Collinsville, Cordelia, Dixon, Mainte Prairie, and Vacaville?
    2. Is my exchange & reverse exchange real estate service company well-established in the community?
    3. Does my exchange & reverse exchange real estate service company have good references that I have checked?
    4. Is my exchange & reverse exchange real estate service company applying pressure or sales tactics in order to get me to sign a contract before I am ready?
    5. Is my exchange & reverse exchange real estate service company flexible regarding the commission rate?
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  • How To Work With
    Sign a Buyer’s Broker Agreement Before Finalizing the Real Estate Exchange & Reverse Exchange Service

    If you are purchasing real estate such as business real estate properties, your real estate mortgage broker may ask you to sign a “buyer’s agent agreement.” If you choose to switch to a different real estate broker at the moment of signing a contract for real estate property for the purpose of saving money, etc., this contract ensures that the real estate broker will be compensated for their work. Before signing a buyer’s agent agreement, you may want to carefully consider the following issues:

    • Make sure that the total compensation is covered in the buyer’s agreement. Any commission paid by the seller to the purchaser’s broker will reduce any commission owed by the buyer. Also, avoid paying a retainer fee. Make sure you check to see how to cancel the contract if you are dissatisfied with the real estate broker’s performance.
    • Exchange 1031 Experience. Be sure that the real estate broker of choice is experienced in real estate exchange and reverse exchange services.
    • Set a reasonable time period for working with the real estate broker in Solano County, including the larger cities of Vallejo, Fairfield, Vacaville, Suisun City, Benicia, Dixon, and Rio Vista . You can always renew later if needed. Remember: if you purchase a property such as commercial real estate a few months after the contract has expired, the real estate broker is still entitled to a commission.
    • Geographic area. Be sure that the real estate broker is experienced in the geographic area in which you are purchasing property. If it is possible that you will venture beyond the comfort zone of the real estate broker, make a provision in the contract to be referred to another broker by your current real estate broker. The current real estate broker can collect a referral fee or simply void the contract.

    Sign the Listing Contract Before Finalizing the Exchange & Reverse Exchange Service
    A listing contract is the contract between a real estate broker and a seller of real estate property that gives the broker the right to offer the property for sale. The listing contract will be signed before completing the exchange & reverse exchange service. It must include the following:

    • The terms and conditions under which the brokerage fee will be paid by the seller
    • The list price at which the property will be offered for sale
    • Authorizes the broker to cooperate with other brokers as sub-brokers and also details the compensation that will be offered to those brokers in the event they secure a buyer.
    • A beginning date and a termination date
    • The amount offered to the real estate broker regarding compensation. This can be in the form of a percentage of the sales price or a flat fee.

    Authorizes the real estate broker to disclose or not to disclose the existence of offers formerly received.  

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  • Be a Good Customer
    Being a Trustworthy Exchange & Reverse Exchange Real Estate Service Company Customer

    It’s the exchange & reverse exchange real estate service company’s responsibility to provide exceptional service while assisting you with the exchange & reverse exchange services. But you play a big part in the success of your exchange & reverse exchange real estate service company, too. Here are a few simple steps you can take to be a good customer when hiring a exchange & reverse exchange real estate service company in Solano County.

    • When your exchange & reverse exchange real estate service company contacts you, return calls promptly to keep the work on schedule.
    • Be sure your service representative has a phone number where they can reach you at all times while they’re working for you. The work will move along more smoothly if your exchange & reverse exchange real estate service company can reach you for any necessary updates or questions.
    • Be clear and upfront with the exchange & reverse exchange real estate service company. Let them know what you want from your exchange & reverse exchange real estate service company, the long-term outcome you’re expecting and specific ways they can satisfy your expectations.
    • Before you hire a exchange & reverse exchange real estate service company in Solano County, restate your expectations and goals, and reiterate to the exchange & reverse exchange real estate service company representative your understanding of the agreement. Most problems with local exchange & reverse exchange real estate service companies occur because of a breakdown in communication. By being clear about your expectations and theirs, you can avoid most conflicts.
    • Ask your exchange & reverse exchange real estate service company if you should call to check on the progress or if he will call you with updates.
    • Pay for the exchange & reverse exchange real estate service company’s work promptly.
    • Remember, a friendly smile goes a long way!

    Why would you want to be a reliable customer? Exchange & reverse exchange real estate service company’s in Solano County, including the larger cities of Vallejo, Fairfield, Vacaville, Suisun City, Benicia, Dixon, and Rio Vista, appreciate customers who are straightforward, honest and easy to work with. Your good customer behavior sets the tone from your end and creates an environment conducive to a good relationship. Things may very well go smoother and any problems may be more easily resolved.

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Check The Work
Review the Services Promised and Provided Before Moving Forward

 

Once you’re on your way with your Solano County exchange and reverse exchange real estate transaction and the end of the process is in sight, you’ll want to take a fresh look at the contract and the invoice or explanation of payment, comparing the services actually provided with the services you were originally promised.

This is your chance to ask any final questions, get clarification on items you may not completely understand, review any guarantees or warranties, and review any responsibilities you may bear. If the exchange or reverse exchange process isn’t quite complete at this juncture, now is the best time to talk about the final steps in the process.

Keep in mind that once the transaction is completed and the company has been paid, either directly by you or through a points system associated with your real estate transaction, it can be harder to get the answers you want. So be sure you have closure on the deal before proceeding.

For your protection, the invoice or explanation of payment from exchange and reverse exchange real estate brokers in Solano County or your area should include the following items:

  • The real estate exchange company’s name, physical office address, and state license number.
  • A complete list of all services rendered.
  • The total cost for the services. You may want to request an itemized invoice that shows breakdowns of the total cost, including an itemized amount charged for fees, administrative costs, and other charges.
  • A written explanation of any warranties or guarantees provided by the real estate exchange service or their agents.
  • A written explanation of any responsibilities you bear in the process.
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Written Warranties
The Diamond Certified Performance Guarantee

Diamond Certified companies are backed by the Diamond Certified Performance Guarantee. If the company you’ve hired is Diamond Certified and you can’t resolve the issue by talking with the owner, contact the mediation department at [email protected] or call 800-738-1138.

Ending Conflict Effectively with Exchange & Reverse Exchange Real Estate Service Companies in Solano County
The truth is most exchange & reverse exchange real estate sales brokers in Solano County are honest and really do look out for their customers’ best interests. Still, you should know what to do if you are ever dissatisfied with your local exchange & reverse exchange real estate sales broker’s service or work.

If you have a complaint or concern about the service you received from your exchange & reverse exchange real estate sales broker from Solano County, including the larger cities of Vallejo, Fairfield, Vacaville, Suisun City, Benicia, Dixon, and Rio Vista, immediately speak with the real estate broker or the real estate company manager. It is often best to resolve problems directly with the real estate sales broker, minimizing conflict and getting your real estate project finalized on time.

When discussing the issue with the real estate sales broker, keep these tips in mind:

  • Review the contract specifications with your real estate broker and attempt to verbally resolve any problems in person.
  • Set a deadline for resolution, and tell the exchange & reverse exchange real estate sales broker that you are willing to agree on a mutually-beneficial solution.
  • Try discussing the problem with a trusted family member or a friend. If that doesn’t help, you may need to seek legal advice from an attorney.
  • You may legally withhold payment until the dispute is resolved to your liking.
  • If you do not get a suitable response, consider sending a letter that outlines the problem and how you would like it resolved. Send the letter by certified mail and request a return receipt. If the problem continues, it may be time for outside intervention.
  • Let your exchange & reverse exchange real estate sales broker know that you’re willing to compromise or negotiate a mutually-beneficial agreement.
  • Remain calm and polite.

Document your concerns in writing with the exchange & reverse exchange real estate sales broker. Write down the real estate sales broker’s response to your complaints in case you need records for future arbitration.

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Top 10 Requests
Top Service Requests from Exchange & Reverse Exchange Real Estate Service Companies

There are several types of exchange & reverse exchange real estate service companies in Solano County, including the larger cities of Vallejo, Fairfield, Vacaville, Suisun City, Benicia, Dixon, and Rio Vista,  that provide exchange & reverse exchange real estate services for all types of property. Below is a list of the most popular properties that exchange & reverse exchange real estate services are provided for.

Investment Property Exchange & Reverse Exchange
This is property that is purchased with the intention of getting a return. It is not occupied by the owner. Investment property can include an apartment building, a duplex, vacant land, commercial property, a house—basically any type of real estate.

Ocean-Front Properties Exchange & Reverse Exchange
Ocean-front property is property that is adjacent to the ocean.

Real Estate Property Exchange & Reverse Exchange
Real estate property is any property that is listed as for sale. It can include residential property, commercial property, or vacant land.

Personal Property Exchange & Reverse Exchange
Personal property is property that is owned by an individual or business which is movable and is not affixed to or associated with the land.

Vacation Properties Exchange & Reverse Exchange
Vacation properties are residences used for holiday vacations, such as a beach house or cottage.

Industrial Properties Exchange & Reverse Exchange
Industrial properties are intended for the use a high-technology activity, the manufacture of materials or goods, or the processing of materials and goods by chemical or physical change.

Farm Acreage Exchange & Reverse Exchange
Farm acreage is an allotment of land for the purpose of farming. Land for farming is typically devoted to the practice of producing and managing food such as grains, produce, or livestock.

Commercial Real Estate Investment Exchange & Reverse Exchange
This is land or buildings that are used for the purpose of generating a profit. Commercial property includes medical centers, office buildings, industrial property, retail stores, shopping centers, warehouses, farm land, multifamily housing buildings, etc.

Residential Homes Exchange & Reverse Exchange
A residential home is a skilled nursing unit that provides care for residents. Usually residents of a residential home require constant nursing care and are unable to independently manage daily living skills.

Real Estate Lots Exchange & Reverse Exchange
Real estate lots are tracts or parcels of land that are owned or meant to be owned. A lot is a small area of land that is empty except for, possibly, pavement, or other similar improvements.

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Glossary Of Terms
Glossary of Terms for Clients of Exchange & Reverse Exchange Real Estate Companies

Below are key exchange & reverse exchange real estate service company terms and descriptions that will help you navigate your way through your exchange & reverse exchange project from beginning to end.

1031 exchange
This is a 1031 tax deferral which allows taxpayers to reinvest the money from the sale of property that has been used for business or investment purposes into another property that will be used for investment or business purposes. The newly acquired piece of property must be of equal or greater value than the original piece of property.

Also known as: 1031 exchange requirements, 1031 exchange real estate, 1031 exchange property, reverse 1031 exchange, 1031 exchanges, what is a 1031 exchange, 1031 exchange rules

boot
This is the property the purchaser receives in the exchange that does not quality as a “like-kind” of property. The “boot” portion is subject to taxation.

business real estate properties
These are commercial properties that are used for the purpose of business.

Also known as: commercial real estate listings, industrial real estate, business real estate for sale, commercial real estate brokers, small business real estate, commercial real estate, free commercial real estate listings, commercial real estate for lease, buy commercial real estate, commercial real estate property, real estate listings

deferred exchanges
This is a situation in which the property owner’s tax on any gain realized in a sale is deferred until some future date.

Also known as: tax deferred exchange, 1031 exchange, 1031 exchanges, real estate exchange, tax deferred exchanges, 1031 deferred exchange, 1031 tax deferred exchange, tax deferred exchange 1031, deferred 1031 exchange

exchanger
This is the owner of the investment property who is looking to make a tax deferred exchange.

international real estate exchanges
This is a real estate transaction that involves the sale of one international property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

Also known as: real estate exchange, 1031 exchanges, commercial for sale, house listings for sale, property listings for sale, free home listings, real estate exchanges

like-kind property
This is the properties involved in a tax deferred exchange. They must be similar cost as well as types of property. Like-kind property cannot be your personal residence or a second home.

like-kind real estate exchanges
This is a real estate transaction that involves the sale of one property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

mortgage exchanges
This is a real estate transaction that involves the sale of one property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

private exchange real estate
This is a private real estate transaction between two parties that involves the sale of one property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

property exchanges
This is a real estate transaction that involves the sale of one property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

Also known as: property exchange, 1031 property exchanges, vacation property exchange, 1031 property exchange, property swap exchange
real estate capital gains tax service

real estate exchange services
These are the services that assist a buyer in a type of exchange of real property for real property. All types of real property are vacant land, commercial, residential, and some long term leases.

Also known as: real estate exchange, real estate 1031 exchange, 1031 real estate, 1031 real estate exchange, 1031 exchange real estate, 1031 exchanges real estate, real estate exchange 1031, real estate investment companies, exchange services

real estate swap
This is trading or swapping real estate with someone who is interested in trading their property for yours.

Also known as: real estate trade, swap real estate, house swapping, real estate listings, house swap, real estate sites

real estate trade property
This is property that is traded in an “I buy yours, you buy mine” arrangement.

real estate trades
This is trading or swapping real estate property with someone who is interested in trading their property for yours.

real property exchange
This is a real estate transaction that involves the sale of one property with the tax on the capital gain deferred due to the purchase of another property that is similar in value in type in exchange for the first property.

Also known as: 1031 property exchange, 1031 exchange properties, commercial property exchange, tax free exchange, 1031 tax exchange

relinquished property
This is a reference to the original property being sold by the owner when making a 1031 exchange.

Also known as: 1031 exchange, real estate tax free exchange, 1031 property, 1031 exchange rules, 1031 swap, real estate exchange agreement

replacement property
This property is also the “new” property that the purchaser is buying in replace of the relinquished property.

reverse exchange services
These are services that assist an owner who has purchase the replacement property before the sale of the relinquished property.

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Frequently Asked Questions
FAQ for Real Estate Exchange and Reverse Exchange Brokers

Q: Why choose a Diamond Certified exchange & reverse exchange real estate service company?
A: Diamond Certified helps you choose a exchange & reverse exchange real estate service company with confidence by offering a list of top-rated local companies who have passed the country’s most in-depth rating process. Only exchange & reverse exchange real estate service companies rated Highest in Quality earn the prestigious Diamond Certified award. Most companies can’t pass the ratings. American Ratings Corporation also monitors every Diamond Certified company with ongoing research and ratings. And your purchase is backed by the Diamond Certified Performance Guarantee. So you’ll feel confident choosing a Diamond Certified exchange & reverse exchange real estate service company.

Q: What is a 1031 exchange?
A: Section 1031 of the IRS tax code allows you to defer taxes on capital gains from the sale of investment properties if all the proceeds are quickly invested in replacement properties. Basically, you’re deferring the taxes until you sell the new property.

Q: What types of real estate qualify for 1031 exchanges? Can I do a 1031 exchange on my vacation home or rental property?
A:Raw land, or vacant land, that’s held for investment purposes qualifies for a 1031 exchange. Properties that you’re renting out qualify, but a primary residence or vacation home does not.

Q: When do I have to decide about making an exchange?
A: You have to decide to engage in an exchange before you sell the relinquished property. If you sell the property before choosing to do an exchange, you can’t defer the capital gains by investing in the new property. The transaction has been completed and you’ve acquired the tax liability.

Q: When is the 1031 exchange completed?
A: It is complete when you close on the replacement property.

Q: Do I need to have a mortgage on the replacement property?
A: After you pay off the mortgage, all of the net proceeds from the sale have to go into the replacement property. Basically that means that the new property must be of equal or greater value than the relinquished property. If you have the money to pay the difference, you don’t need to have a mortgage on the replacement property.

Q: Can the proceeds from the sale of a relinquished property be held in escrow?
A: Yes. An exchange & reverse exchange real estate service company warehouse the proceeds from the sale in client accounts and apply them to the purchase of a replacement property.

Q: Is there a limit to how long the proceeds can remain in escrow?
A: The answer is yes. There are two deadlines. One is at 45 days; another is at 180 days. You have 45 calendar days to identify one or more replacement properties. The 45 days start from the day of the sale. You have to close on one of the identified properties within 180 calendar days. You incur the capital gains tax liability from the sale if you miss either of these two deadlines. The deadlines are set in stone and can only be waived if a natural disaster affects the property. Personal emergencies do not count.

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