1. You cannot have actual or constructive
control of any of the proceeds received from the sale of the old property.
By law, all money is held by a Qualified Intermediary (also referred to as
an Accommodator or Facilitator). You cannot have an associate or employee,
your attorney, broker or CPA hold the proceeds, nor can you leave the
proceeds in escrow until the second property is purchased.
2. You have 45 days from the date of
closing on the old property to identify a list of properties, from which
you will purchase the new property.
3. From the date of closing, you have 180
days to close on one or more of the properties from your 45-day list.
4. The titleholder on the old property must
be the same titleholder on the new property.
5. You must reinvest all cash proceeds from
the sale, and purchase a new property or properties of equal or greater
value, in order to avoid taxation on the gains.
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