Step 1 - Consult with your tax and financial advisors to determine if a tax-deferred exchange is appropriate for your circumstances and compatible with your investment goals.

Step 2 - Listing the Relinquished Property for sale with a licensed real estate broker.  The Exchanger will list the Relinquished Property with a real estate broker.  The broker/agent will disclose the intend to complete an exchange in the listing agreement.

Step 3 - Offer, Counter Offer and Acceptance. The Exchanger (Seller) enters into contract with the Buyer for the sale/exchange of the Relinquished Property that discloses the Seller's intent to complete the exchange, and obtain the Buyer's cooperation.

Step 4 - Open escrow for the Relinquished Property and coordinate with the Facilitator.  All earnest money deposits should be placed with the Escrow Company. The Facilitator prepares the exchange agreement and the necessary amendments and assignments and coordinates with the escrow holder . The close of escrow of the Relinquished Property and the receipt to the net proceeds by the Facilitator completes Phase One of the tax-deferred exchange.  Important: The exchange documents must be in place and signed by all parties prior to close of escrow.

Step 5: Identify Replacement Property. The Exchanger must identify all Replacement Property within 45 days from the close of escrow of the Relinquished Property. The identification must be in writing, signed by the Exchanger, and sent to the proper parties by the end of the 45th day.

Step 6:  Contracting for the Replacement Property.  After closing on the Relinquished Property the Exchanger has up to 180 days to acquire the Replacement Property.  With the help of his or her agent the Exchanger enters into contract to purchase the Replacement Property from the Seller.  In the contract to purchase the Exchanger discloses the Exchanger's intent to complete the exchange and obtains the Seller's cooperation.