We highly recommend calling ADE prior to putting your relinquished property on the market for sale. When you call, we can discuss your situation and investment objectives and advise you on the best way to proceed. This pre-planning step allows us to proactively recommend steps that often lead to a better outcome.

There are no special steps you need to take when selling the relinquished property in an exchange; it is essentially handled like a normal disposition of property. We recommend that a 1031 clause about your intent to exchange is inserted in your sales contract, but it is not mandatory.

Once the property you are selling (the relinquished property) is under contract with an established closing date, you need to notify us. We will prepare an exchange agreement for you that will also be sent to the closing attorney, escrow agent or title company along with exchange and wiring instructions.

Once the relinquished property has closed, the you have until midnight on the 45th day to identify replacement property. Generally this requirement is fulfilled by the you sending a letter to ADE listing the potential replacement properties you are identifying. There are specific rules as to how many properties can be identified. Once you are beyond the 45 days, you cannot substitute properties and are limited to the properties already listed in your identification letter.