Question

In a 1031 exchange how long does an investor have to choose a replacement property after closing escrow on the old property?

Answer 1

In a 1031 exchange, an investor typically has 45 days to identify potential replacement properties and 180 days to close on one or more of the identified properties.

Step-by-step explanation:

In a 1031 exchange, an investor typically has 45 days to identify potential replacement properties after closing escrow on the old property.

This is known as the identification period. Within this timeframe, the investor needs to provide a written notice to the qualified intermediary or closing officer, stating the addresses or descriptions of the replacement properties they are considering.

After the identification period, the investor must close on one or more of the identified replacement properties within 180 days from the date of closing escrow on the old property.

This is known as the exchange period. It's important for the investor to carefully consider their options and conduct thorough due diligence during this time frame to ensure they find a suitable replacement property.

Overall, an investor in a 1031 exchange has 45 days to identify replacement properties and 180 days to close on one or more of the identified properties, providing a total of 225 days from closing escrow on the old property to complete the exchange.