--- title: How To Declare a 1031 Exchange description: There are several parties and many documents involved with a 1031 exchange. We’ll look at what’s needed to get started and what to expect throughout the process. image: https://www.realized1031.com/hubfs/how%20can%20i%20exchange%20my%20investment%20property%20for%20a%20real%20estate%20portfolio%3F-481337750.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** # How To Declare a 1031 Exchange Posted Jul 13, 2023 ![how can i exchange my investment property for a real estate portfolio?-481337750](https://www.realized1031.com/hs-fs/hubfs/how%20can%20i%20exchange%20my%20investment%20property%20for%20a%20real%20estate%20portfolio%3F-481337750.jpg?width=750&height=392&name=how%20can%20i%20exchange%20my%20investment%20property%20for%20a%20real%20estate%20portfolio%3F-481337750.jpg) How does one start a 1031 exchange? And once it is started, what should an investor expect throughout the process? There are several parties and many documents involved with a 1031 exchange. We’ll look at what’s needed to get started and what to expect throughout the process. ### Starting a 1031 Exchange A 1031 exchange starts with planning. Going to a realtor after you have closed on the [relinquished property ](https://www.realized1031.com/glossary/relinquished-property)is too late. The exchange must be started before settlement completes. The workflow of a 1031 exchange is to sell a property and then buy a property with an exchange facilitator in the middle to facilitate the process. The investor signs over rights and ownership of the relinquished property to the facilitator before settlement completes. Specifically, the purchase sale agreement is signed over to the realtor. The property deed is transitioned to the buyer of the relinquished property. Negotiating the relinquished property can be done before meeting with the facilitator. The seller and buyer can discuss what the transaction will look like, including pricing and any terms. To be completely tax-deferred, the replacement property should be of the same or higher value in equity compared to the relinquished property, which is one of the basic components of [like-kind property](https://www.realized1031.com/glossary/like-kind-property). The facilitator will want the exchanger's name (i.e., seller of relinquished property) and contact information. They will also need to know who is handling the closing, which might be a realtor or an attorney. The escrow officer’s information will be needed as well. Once the facilitator has the necessary information, they will create an exchange agreement. This agreement will go to both the seller and the buyer. During the exchange, the facilitator is the seller of the relinquished property and buyer of the replacement property. Closer to the end of the exchange process, the properties transition from the facilitator to the final buyer and seller. Once the closing occurs, the facilitator will send the exchanger information for their 45th and 180th days. All of the [identification rules](https://www.realized1031.com/blog/1031-exchange-rules-explained) should be included as well. A form should be included for the exchanger to identify up to three properties. The facilitator must receive this form no later than the 45th day. ### During the 1031 Exchange Process As the buyer, the exchanger will likely sign documents throughout the 1031 exchange process. Documents will need to be signed as transactions occur. Once the replacement property transaction has been completed, the deed will go from the seller to the exchanger (i.e., seller of relinquished property). Once closings on both properties have been completed, the facilitator should send out more documents that show the properties involved in the exchange and a full accounting of funds. The exchanger can use this information for tax purposes. All of these transactions (mainly closing on the two properties) must be completed within the 180-day window. Investors shouldn’t rely on the involved process to keep the 1031 exchange process moving forward. In the end, it’s the investor’s responsibility to complete the exchange on time. This means staying on top of deadlines (i.e., 45-day and 180-day deadlines) and ensuring everyone is doing their part.   A good qualified intermediary and 1031 exchange facilitator are critical to ensuring the process goes smoothly. This is where spending time researching these entities can pay off and ultimately result in a successful 1031 exchange. 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. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. Costs associated with a 1031 transaction may impact investor's returns and may outweigh the tax benefits. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. 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/how-to-declare-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" : "How does one start a 1031 exchange? And once it is started, what should an investor expect throughout the process? There are several parties and many documents involved with a 1031 exchange. We’ll look at what’s needed to get started and what to expect throughout the process. Starting a 1031 Exchange A 1031 exchange starts with planning. Going to a realtor after you have closed on the relinquished property is too late. The exchange must be started before settlement completes. The workflow of a 1031 exchange is to sell a property and then buy a property with an exchange facilitator in the middle to facilitate the process. The investor signs over rights and ownership of the relinquished property to the facilitator before settlement completes. Specifically, the purchase sale agreement is signed over to the realtor. The property deed is transitioned to the buyer of the relinquished property. Negotiating the relinquished property can be done before meeting with the facilitator. The seller and buyer can discuss what the transaction will look like, including pricing and any terms. To be completely tax-deferred, the replacement property should be of the same or higher value in equity compared to the relinquished property, which is one of the basic components of like-kind property. The facilitator will want the exchanger's name (i.e., seller of relinquished property) and contact information. They will also need to know who is handling the closing, which might be a realtor or an attorney. The escrow officer’s information will be needed as well. Once the facilitator has the necessary information, they will create an exchange agreement. This agreement will go to both the seller and the buyer. During the exchange, the facilitator is the seller of the relinquished property and buyer of the replacement property. Closer to the end of the exchange process, the properties transition from the facilitator to the final buyer and seller. Once the closing occurs, the facilitator will send the exchanger information for their 45th and 180th days. All of the identification rules should be included as well. A form should be included for the exchanger to identify up to three properties. The facilitator must receive this form no later than the 45th day. During the 1031 Exchange Process As the buyer, the exchanger will likely sign documents throughout the 1031 exchange process. Documents will need to be signed as transactions occur. Once the replacement property transaction has been completed, the deed will go from the seller to the exchanger (i.e., seller of relinquished property). Once closings on both properties have been completed, the facilitator should send out more documents that show the properties involved in the exchange and a full accounting of funds. The exchanger can use this information for tax purposes. All of these transactions (mainly closing on the two properties) must be completed within the 180-day window. Investors shouldn’t rely on the involved process to keep the 1031 exchange process moving forward. In the end, it’s the investor’s responsibility to complete the exchange on time. This means staying on top of deadlines (i.e., 45-day and 180-day deadlines) and ensuring everyone is doing their part. A good qualified intermediary and 1031 exchange facilitator are critical to ensuring the process goes smoothly. This is where spending time researching these entities can pay off and ultimately result in a successful 1031 exchange.", "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" : "2023-07-13T12:00:02+0000", "datePublished" : "2023-07-13T12:00:02+0000", "description" : "There are several parties and many documents involved with a 1031 exchange. We’ll look at what’s needed to get started and what to expect throughout the process.", "headline" : "How To Declare a 1031 Exchange", "image" : { "@type" : "ImageObject", "height" : 392, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/how%20can%20i%20exchange%20my%20investment%20property%20for%20a%20real%20estate%20portfolio%3F-481337750.jpg", "width" : 750 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/how-to-declare-a-1031-exchange", "name" : "How To Declare 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://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/how%20can%20i%20exchange%20my%20investment%20property%20for%20a%20real%20estate%20portfolio%3F-481337750.jpg" } ```