--- title: Do I Need A Lawyer For A 1031 Exchange? description: While it’s certainly possible to complete a 1031 exchange on your own, investors might consider engaging legal counsel to help avoid making any mistakes. image: https://www.realized1031.com/hubfs/Images/photo/abstract/house-lawyer-suit-IS-1189048946.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Do I Need A Lawyer For A 1031 Exchange? Posted Feb 1, 2021 ![house-lawyer-suit-IS-1189048946](https://www.realized1031.com/hs-fs/hubfs/Images/photo/abstract/house-lawyer-suit-IS-1189048946.jpg?width=750&height=392&name=house-lawyer-suit-IS-1189048946.jpg) The [1031 exchange](https://www.realized1031.com/blog/what-is-a-1031-exchange) process can be complicated, especially for novice or first-time real estate investors. Completing a successful exchange requires strict adherence to deadlines and other IRS exchange provisions. While it’s certainly possible to cross the finish line on your own, investors might consider engaging legal counsel to help avoid making any mistakes that could disqualify their exchange and create tax liability from the sale of an investment property. ### Why it makes sense to hire an attorney to help with your 1031 exchange The IRS rules regarding 1031 exchanges are pretty much set in stone -- break any of them, and you’ll likely find yourself with a disqualified exchange and hefty tax liability. Missteps that an experienced real estate attorney could help you avoid include: - Failure to identify suitable like-kind replacement assets within 45 days, and closing on them within 180 days - Acquiring partial interest in a designated replacement property - Taking receipt of funds from your relinquished asset - Holding the replacement property for less than one year - Failure to designate a Qualified Intermediary to hold funds from your 1031 exchange Attorneys with experience in real property law and 1031 exchanges can help investors bridge any gaps in knowledge about the intricacies of the exchange process and help ensure they follow procedure to complete a successful exchange. Skills a lawyer could potentially bring to the table include:  - Helping identify qualifying like-kind properties that match your relinquished asset in market value and mortgage. - Facilitating the purchase of replacement assets prior to the 180-day deadline. - Offering legal advice throughout the transaction process to help ensure investors always adhere to rules set forth in the 1031 tax code. In some jurisdictions, an attorney can be designated as your Qualified Intermediary, but it can’t be your regular legal counsel -- IRS rules state that legal counsel can only act as a Qualified Intermediary if he or she has not performed services for the client in the prior two years unless the work is related to a 1031 exchange. ### Should you hire an attorney for your 1031 exchange? Experienced investors who are familiar with the 1031 exchange process might be able to forgo hiring legal counsel and navigate the intricacies of the exchange on their own. Novice and first-time exchangers who might have some uncertainty about how to successfully complete a 1031 exchange would be well-served by adding an experienced real estate lawyer to their exchange team. Ultimately, though, the decision to hire a lawyer to help complete a 1031 exchange rests with the exchanger. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Consult with your tax advisor regarding your individual circumstances. Download The Guide To 1031 Exchange [![The 1031 Investor's Guidebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-250.png?width=250&height=250&name=1031-Exchange-eBook-250.png "Tackle the art and science of ...") ](https://www.realized1031.com/blog/do-i-need-a-lawyer-for-a-1031-exchange#blogform) Download eBook ---   --- ### The 1031 Investor's Guidebook ![Download The Guide To 1031 Exchange](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-550.jpg?width=550&height=650&name=1031-Exchange-eBook-550.jpg) Tackle the art and science of completing your 1031 exchange. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "The 1031 exchange process can be complicated, especially for novice or first-time real estate investors. Completing a successful exchange requires strict adherence to deadlines and other IRS exchange provisions. While it’s certainly possible to cross the finish line on your own, investors might consider engaging legal counsel to help avoid making any mistakes that could disqualify their exchange and create tax liability from the sale of an investment property. Why it makes sense to hire an attorney to help with your 1031 exchange The IRS rules regarding 1031 exchanges are pretty much set in stone -- break any of them, and you’ll likely find yourself with a disqualified exchange and hefty tax liability. Missteps that an experienced real estate attorney could help you avoid include: Failure to identify suitable like-kind replacement assets within 45 days, and closing on them within 180 days Acquiring partial interest in a designated replacement property Taking receipt of funds from your relinquished asset Holding the replacement property for less than one year Failure to designate a Qualified Intermediary to hold funds from your 1031 exchange Attorneys with experience in real property law and 1031 exchanges can help investors bridge any gaps in knowledge about the intricacies of the exchange process and help ensure they follow procedure to complete a successful exchange. Skills a lawyer could potentially bring to the table include: Helping identify qualifying like-kind properties that match your relinquished asset in market value and mortgage. Facilitating the purchase of replacement assets prior to the 180-day deadline. Offering legal advice throughout the transaction process to help ensure investors always adhere to rules set forth in the 1031 tax code. In some jurisdictions, an attorney can be designated as your Qualified Intermediary, but it can’t be your regular legal counsel -- IRS rules state that legal counsel can only act as a Qualified Intermediary if he or she has not performed services for the client in the prior two years unless the work is related to a 1031 exchange. Should you hire an attorney for your 1031 exchange? Experienced investors who are familiar with the 1031 exchange process might be able to forgo hiring legal counsel and navigate the intricacies of the exchange on their own. Novice and first-time exchangers who might have some uncertainty about how to successfully complete a 1031 exchange would be well-served by adding an experienced real estate lawyer to their exchange team. Ultimately, though, the decision to hire a lawyer to help complete a 1031 exchange rests with the exchanger. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Consult with your tax advisor regarding your individual circumstances.", "articleSection" : [ "1031 Exchange" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2021-02-01T13:00:00+0000", "datePublished" : "2021-02-01T13:00:00+0000", "description" : "While it’s certainly possible to complete a 1031 exchange on your own, investors might consider engaging legal counsel to help avoid making any mistakes.", "headline" : "Do I Need A Lawyer For A 1031 Exchange?", "image" : { "@type" : "ImageObject", "height" : 501, "url" : "https://f.hubspotusercontent10.net/hubfs/733513/Images/photo/abstract/house-lawyer-suit-IS-1189048946.jpg", "width" : 750 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/do-i-need-a-lawyer-for-a-1031-exchange", "name" : "Do I Need A Lawyer For A 1031 Exchange?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://f.hubspotusercontent10.net/hubfs/733513/Images/photo/abstract/house-lawyer-suit-IS-1189048946.jpg" } ```