Regular/ Forward/ Standard/ Delayed

• The most common type of exchange
  
• A property is sold (relinquished) and another property/ properties is/ are purchased (replacement) within the 180 days following the sale of the Relinquished Property
  
• Under the "safe harbor" rules, the sale proceeds must be held by a Qualified Intermediary between the sale of the relinquished property and the subsequent purchase of the replacement property.
  

**Build-to-Suit/ Construct/ Improvement

• The taxpayer uses the funds from the sale of the relinquished property to construct improvements on the replacement property.
  
• The property on which the improvements are constructed cannot be held by the taxpayer but must be held by a third party, the Exchange Accommodation Titleholder (EAT), until:
  
• The improvements are complete or
  
• The end of the 180 day exchange period, after which the replacement property, with the improvements, is deeded to the taxpayer
  

**Reverse/ Park

• The replacement property is purchased before the sale of the relinquished property
  
• The replacement property must be held by an Exchange Accommodation Titleholder (EAT) until the sale of the relinquished property, (must take place within the 180 days following the purchase of the replacement property)
  
• The relinquished property is also transferred to the EAT, and the EAT then deeds the relinquished property to the Buyer.
  
• At the conclusion of the reverse exchange, title to the replacement property is transferred from the EAT to the exchangor.
  

Simultaneous

• The relinquished and replacement property escrows are closed and recorded on the same day.
  
• Can happen when two properties are swapped, property for property between the same two individuals or entities, or it can also happen when the relinquished property is sold and the replacement property is purchased both on the same day.
  
• Because timing is critical and things can potentially go wrong, a Qualified Intermediary may be necessary to facilitate the exchange, as this gives the investor the protection of the 1031 safe harbor rules under a forward exchange.
  

***Note: These are simplified explanations, and should not replace the role of consulting with an exchange coordinator as certain elements and circumstance vary.

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