The safest time to organize a Memphis exchange is before the relinquished property closes and before the sale proceeds can reach the seller.
Before relinquished-property closing
Clarify ownership and qualifying use, talk with the CPA and attorney, select an independent qualified intermediary, estimate equity and debt, and define what the replacement property should accomplish.
The identification period
The identification period is commonly described as 45 days beginning with the relinquished-property closing. Build direct and backup candidates early enough for financing, diligence, and written identification questions to be reviewed.
The exchange period
The replacement closing is commonly required within 180 days of the relinquished-property closing, subject to the owner's tax-filing deadline and professional advice. Financing, title, inspections, insurance, and entity documents cannot wait until the final week.
When the preferred property appears first
A reverse exchange may be considered when the desired replacement property must be secured before the current property sells. This requires specialized QI, title, financing, tax, and legal work.
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The more advanced the sale, the more important it is to identify the next required handoff immediately.