Delayed Exchange

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A delayed exchange (also known as a deferred exchange, a forward exchange, a Starker exchange, and a like-kind exchange) is the most common type of exchange structure. An oversimplified summary of the logistics of a delayed exchange are as follows:

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  1. The exchanger formally declares his intention to exchange. 
  2. The property being sold (called the relinquished property) closes.
  3. The Qualified Intermediary holds the proceeds from the sale of the relinquished property.
  4. The exchanger locates and formally identifies suitable replacement property.
  5. Closing occurs on the replacement property.