1031 Exchange Experts

Home | About Us | 1031 FAQ | Library | Tools | Request Funding Docs | Resources | Apply Online | Site Map | Contact Us
  Phone - -
Browse by Topic
  Why Use Haven Exchange
  Fidelity Bond Program
  Real Estate Capital Gains Tax
  1031 Exchange Requirements
  Real Estate Investing
  Qualified Intermediary
  Open a New 1031 Exchange
  1031 Exchange Information
  Tenant in Common
  1031 Tax Deferred Exchange
  1031 News!
  TIC Investment
  Reverse 1031 Exchange
  1031 Guide
  1031 Do's and Dont's
  Earnest Money Deposits
  Exchange Doc for Buyer

$650 covers you for one relinquished property and one replacement property.

An additional $175 will be charged for each replacement property purchased afterwards.

There's a $30 wire fee for outgoing wires.

That's it.

AND we pay interest on the funds while we
hold them.

1031 Exchange Program

Step by Step 1031 Exchange:

Please note: 1031 exchanges may have myriad variations.  The steps are merely a simplified  illustration of the process so you can see the events that usually take place.

Please see the following steps:

Step 1. Retain the services of tax counsel/CPA. Become advised by same.

Step 2. Sell the property, including the Cooperation Clause in the sales agreement. Make sure your escrow officer receives the  EZ form, completes it, and faxes it to Haven Exchange.

Step 3. Enter into an 1031 exchange agreement with Haven Exchange, in which Haven Exchange is named as principal in the sale of your relinquished property and the subsequent purchase of your replacement property. The 1031 Exchange Agreement must meet with IRS Requirements, especially pertaining to the proceeds.  Along with said agreement, an amendment to escrow is signed which so names Haven Exchange as seller. Normally the deed is still prepared for recording from the taxpayer to the true buyer. This is called direct deeding. It is not necessary to have the replacement property identified at this time.

Step 4. The relinquished escrow closes, and the closing statement reflects that Haven Exchange was the seller, and the proceeds come to Haven Exchange. They are placed with Union Bank of California in a fully guaranteed money market account. The closing date of the relinquished property escrow is Day 0 of the exchange, and that’s when the exchange clock begins to tick. As part of our 1031 Exchange program and service, Haven Exchange sends a letter to the taxpayer, advising them of the amount of proceeds, the date of the closing of escrow according to the escrow closing statement, and the dates of the 45th and 180th days. A form for identification of replacement properties accompanies this letter, though it is not necessary to use a form to identify replacement property.

Fidelity Bond Program
  Learn about Our Fidelity
Bond Coverage
  Click Here  
Haven is the Best
Customers Experience with Haven Exchange
  See what our Customers
have to say about us
  Click Here  
1031 Wise Presentation
  Use 1031 Strategy
To Build Wealth
  Click Here  
Step 5. The taxpayer sends written identification of the address or legal description of the replacement property to Haven Exchange, on or before Day 45 of the exchange. It must be signed by everyone who signed the exchange agreement, and it may be faxed, hand delivered, or mailed. Send it via certified mail, return receipt requested. You will then have proof of receipt from a government agency. You will receive a reminder phone call from our office, whether you are doing a 1031 Exchange in Orange County or a 1031 in Wisconsin.

Step 6. Taxpayer enters into an agreement to purchase replacement property, again including the Cooperation Clause. An amendment is signed naming Haven Exchange as buyer, but again the deeding is from the true seller to the taxpayer.

Step 7. When conditions are satisfied and escrow is prepared to close and certainly prior to the 180th day, per the 1031 Exchange Agreement, Haven Exchange forwards the exchange funds to escrow, and the closing statement reflects Haven Exchange as the buyer. A final accounting is sent by Haven Exchange to the taxpayer, showing the funds coming in from one escrow, and going out to the other, all without constructive receipt by the taxpayer.

Step 8. Taxpayer files form 8824 with the IRS when taxes are filed, and whatever similar document your particular state requires.

Call About our 1031 Exchange Program.

Toll Free (866) 794-1031 with any questions.

© Copyright 2008 Haven Exchange, Inc. All Rights Reserved

For more information feel free to Contact Us