Starting Your Improvement or Build-To-Suit 1031 Exchange
Thank you for considering Exeter Reverse 1031 Exchange Services, LLC as your Exchange Accommodation Titleholder ("EAT") for your Improvement 1031 Exchange transaction. Improvement 1031 Exchanges are also referred to as Build-To-Suit or Construction 1031 Exchanges. Our 1031 Exchange Specialists have extensive experience and expertise in working with institutional, corporate and individual investors, especially on complex Improvement 1031 Exchange transactions.
You can also email your technical Improvement 1031 Exchange questions to firstname.lastname@example.org and one of our senior 1031 Exchange Advisors will respond no later than 24 hours.
Seek Advice of Legal, Financial, and Tax Counsel
The first step with any 1031 Exchange transaction, especially with more complicated transactions such as Improvement 1031 Exchanges, is to review the proposed Improvement 1031 Exchange transaction with your legal and tax advisors. Make sure that your professional advisors have significant experience and expertise in structuring Build-To-Suit 1031 Exchanges. Seeking competent legal, financial and tax advice should always be an integral part of your 1031 Exchange planning process.
Review Improvement 1031 Exchange with Qualified Intermediary
Second, discuss and review your proposed Construction 1031 Exchange transaction with Exeter Reverse 1031 Exchange Services, LLC as your Exchange Accommodation Titleholder in order to ensure there are no administrative issues that need to be addressed with your Construction 1031 Exchange such as legal title, lender or financing, closing and timing related issues.
Information and Documents for Due Diligence and Pre-Transaction Screening
Third, provide Exeter Reverse 1031 Exchange Services, LLC with the following information and transactional documentation in order to begin the due diligence, pre-transaction screening and set-up of your Improvement 1031 Exchange:
Your complete contact information, including your full legal name, mailing address, office or home, mobile and facsimile phone numbers, email addresses and federal taxpayer identification number, and any additional contact information that might be relevant. You will need to provide this information for each person involved in the Improvement 1031 Exchange.
- If your relinquished property is held in the name of a legal entity such as a limited liability company, general or limited partnership, corporation, or trust, provide the full legal name of the entity, complete list of authorized signers on behalf of the legal entity (include a sample signature block), and its federal taxpayer identification number for the legal entity, and any other information that might be relevant.
- The replacement property and related improvements should be acquired in the same legal name in which you currently hold title to the relinquished property. Notify your 1031 Exchange administrator immediately if this is not the case. You should also have your legal or tax advisor review this.
- Provide the common street address and/or complete legal description and/or Assessor's Parcel Number (APN) for all relinquished and all replacement properties involved in this Improvement 1031 Exchange.
- If a lender will be involved with the purchase of your replacement property, provide your lender's name, individual contact information, including mailing address, office, mobile and facsimile phone numbers, email address, and any additional contact information that might be relevant. A conference call should be scheduled between you, your lender and Exeter Reverse 1031 Exchange Services, LLC to ensure that your lender understands the entire Build-To-Suit Exchange process.
- Provide a copy of the deed where you originally acquired title to your relinquished property that will be part of your Improvement 1031 Exchange.
- Provide a completed Environmental Site Assessment Questionnaire for the replacement property that will be acquired and held or parked with Exeter Reverse 1031 Exchange Servcies, LLC as your Exchange Accommodation Titleholder as part of your Improvement 1031 Exchange transaction. Call Exeter Reverse 1031 Exchange Services, LLC to determine what type of properties are exempt from this requirement.
Documents and Agreements Needed for Processing and Closing
Exeter Reverse 1031 Exchange Services, LLC will prepare all of the necessary Improvement 1031 Exchange agreements and documents, will order the formation of your new limited liability company (LLC) that will be used to acquire and park title to the replacement property, and work with your escrow agent, closing agent or closing attorney to determine what else will be necessary in order to successfully complete your Improvement 1031 Exchange.
The following documentation and information will be needed in order to beginning structuring you Improvement 1031 Exchange:
- Purchase and Sale Agreement for the acquisition of your relinquished property and your replacement property.
- Preliminary Title Insurance Reports or Title Insurance Commitments for the disposition (sale) of your relinquished property and for the acquisition of your replacement property.
- Escrow Instructions — if applicable — for the disposition (sale) of your relinquished property and for the acquisition of your replacement property.
- Insurance binder providing evidence of property and casualty insurance (except if vacant land) and liability insurance coverage. The insurance binder must list the name of the special purpose, single member limited liability company established for the Improvement 1031 Exchange transaction as the insured and Exeter Reverse 1031 Exchange Services, LLC as an additional insured. Evidence of insurance coverage must be provided to Exeter Reverse 1031 Exchange Services, LLC prior to closing.
Phase I Environmental Site Assessment and Inspection Report to determine whether there has been any environmental contamination of the replacement property. This report is required if the property is zoned commercial, office, industrial, retail, agricultural, vacant land, or multi-family consisting of ten units or more. The final Phase I Environment Site Assessment and Inspection Report must be provided to and reviewed by Exeter Reverse 1031 Exchange Services prior to closing.
- Improvement, Construction and Build-To-Suit 1031 Exchange fees, costs related to the set-up, maintenance and disposition of the special purpose, single member limited liability company (LLC) and other related administrative costs will be invoiced through, and are due at, the closing of your replacement property.
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