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Additional TopicsWhat is the timeline for the entire "Exchange Period"? What is the timeline for the "Identification Period"? How do I identify property I wish to use as replacement property? When I identify the Replacement Property, how specific do I need to be? What are the rules for identifying multiple Replacement Properties? Where will the proceeds from the Relinquished Property transaction be held? Questions to answer before choosing an exchange company Reverse Exchanges: A Beginner’s Guide

Rules for identifying replacement property.

1) Three Property Rule You may identify any three properties as Replacement Property.

2) 200% Rule You may identify as many properties as you wish, as long as the collective value of all identified properties does not exceed 200% of the value of all the Relinquished Properties as shown on the closing statement. If you identify four or more Replacement Properties under this rule, you must include the Fair Market value for each property shown on the Identification of Replacement Property Form.

3) 95% Exception If you identify more than three Replacement Properties, and the cumulative values of all properties are more than 200% of the value of the Relinquished Properties, you must acquire 95% of the equity of all properties identified.