Step 2

Identification of Replacement Property
Within 45 days following the closing of your Relinquished Property, you must identify Replacement Property or Properties.  You can do this by sending us an identification statement by fax or using our Identification Statement form online.

The following Rules of Identification apply:

The Three Property Rule: The Exchanger may identify up to three properties, without regard to their value
The 200% Rule: The Exchanger may identify more than three properties, provided their combined fair market value does not exceed 200% of value of the Relinquished Property
The 95% Rule: The Exchanger may identify any number of properties, without regard to their value, provided the Exchanger acquires 95% of the fair market value of the properties identified.

Most exchangers simply use the Three Property Rule, unless they have more than three potential replacement properties in mind.

Next Step

Acquisition of Replacement Property
Complete the acquisition of the Replacement Property within 180 days of the closing of the Relinquished Property.

Back to Step 1 | Go to Step 3