The investor/exchanger signs a contract to sell or relinquish their investment property.

The investor and Directrust 1031 exchange services enter into an exchange agreement that retains Directrust as their Qualified Intermediary (QI) and assigns their rights to Directrust.

The exchange funds are wired to the Directrust individual escrow account set up with the investor’s tax ID, and Directrust instructs the settlement officer to transfer the deed directly from the investor to the buyer.

Exchange periods have a maximum of 180 days (or until the tax filing deadline, including extensions, for the year the relinquished property was sold) for investors to acquire all replacement property. 

Once the relinquished property is sold and closed, the investor has 45 days to identify possible replacement properties.

A replacement property contract is signed by the investor and Directrust is assigned its rights in the contract.

The settlement officer transmits the deed directly from the seller to the investor at the closing of the replacement property/s. Directrust wires the exchange funds to complete the exchange.