While traditional 1031 exchanges require selling your relinquished property before acquiring your replacement, the real world doesn’t always cooperate with that sequence. That’s where a Reverse 1031 Exchange can come into play.
Reverse Exchanges allow you to acquire the replacement property first, then sell the relinquished property within 180 calendar days, while still deferring your taxable gains.
When to Consider a Reverse 1031 Exchange:
• You’ve identified a great replacement property but haven’t sold your current asset yet.
• Market conditions or timing constraints make it risky to wait.
• You want to secure the replacement before listing your relinquished property.
How Does It Work?
Because you cannot legally own both the replacement and relinquished properties simultaneously in a 1031 exchange, Exeter steps in:
• Exeter creates an Exchange Accommodation Titleholder (EAT) to temporarily hold or "park" legal title.
• You acquire the new property, and Exeter holds legal title while you work to sell your current property.
• Once the relinquished property is sold, the exchange is completed and your taxable gains are deferred.
Key Requirements:
• You must sell the relinquished property within 180 calendar daysafter the close of the purchase of your new replacement property.
• You must identify the relinquished property within 45 calendar days of purchasing the replacement.
• The structure must follow IRS guidelines strictly, reverse exchanges are more complex but fully compliant when properly administered.
Reverse exchanges require a trusted Qualified Intermediary to handle all legal and procedural aspects properly.
Exeter specializes in handling all four IRS-approved reverse exchange structures, giving clients the flexibility and compliance assurance they need:
• Exchange Last – Replacement Title-Held
• Exchange First – Relinquished Title-Held
Exeter always sets up a brand new limited liability company for each individual cient reverse exchange; they are never re-used.
Whether you're dealing with improved real estate, unimproved land, or even leasehold interests, Exeter has the expertise and back-end structuring capabilities to execute a compliant transaction smoothly.
Led by a team of experienced professionals and supported by its own Exchange Accommodation Titleholder (EAT) entities, Exeter delivers a fully managed, IRS-compliant process from start to finish.
