Deferred exchanges are also known as "delayed" or "Starker" exchanges.  A standard deferred exchange typically involves one relinquished property and one replacement property.  During the exchange process, it will be necessary for the exchanger to assign interest in the relinquished property and the sales contract to Equity 1031, LLC. We will accept the proceeds of the sale of the relinquished property and deposit the proceeds into a fully insured account at a financial institution on the exchanger's behalf. This is sometimes referred to as phase 1 of the exchange.

When the exchanger purchases a replacement property, the exchanger's interest in the purchase contract is to be assigned to Equity 1031, LLC. We will give the seller of the replacement property the funds in escrow to complete the purchase. The seller will then deed the replacement property to the exchanger.  This is sometimes referred to as phase 2 of the exchange.  With a standard deferred exchange, the exchange process may be considered to be completed at the end of the phase 2.

Reverse exchanges are also known as "parking" exchanges. One of the key differences between a reverse exchange and a deferred exchange is the use of an exchange accommodator titleholder (EAT).  A qualified exchange accommodator agreement (QEAA) must be established. The exchanger may acquire the replacement property first and "park" it with the EAT.  Alternatively, the exchanger may first park the relinquished property with the EAT.  A reverse exchange is more complicated than a deferred exchange and requires careful planning and coordination.  The fee for a reverse exchange is therefore more expensive than the fee for a deferred exchange.  Equity 1031, LLC partners with some of the very best and experienced EATs in the industry to help our clients achieve successful reverse exchanges.  If you are interested in doing a reverse exchange, please contact Equity 1031, LLC to discuss the reverse exchange process in more details.  Equity 1031, LLC suggests prospective clients to contact own accountants or legal advisors to seek advice as to the type of exchange that may be best for the situations.