Exchange Agreement

The owner of the property and the QI enter into an exchange agreement on or before the date of the sale (forward) or purchase (reverse) providing:

• The sale of exchange property and the purchase of the exchange property are interdependent, that is, they both must happen for the exchange to be complete.
• The exchange agreement must contemplate a reciprocal transfer rather than a transfer of property for money consideration only.
• Access to the funds is restricted so the owner is not considered to be in receipt of the funds.

Contract Assignment

• The sale agreement for the asset to be sold must be assigned to the Exchange Company prior to the date of the sale.
• The purchaser for the asset to be sold must acknowledge the assignment on or before the date of the sale.
• The purchase agreement for the replacement property must be assigned to the Exchange Company.
• The seller of the replacement property must acknowledge the assignment on or before the date of the purchase.