What is a reverse exchange?

admin  /   January 25, 2019

As of September 15, 2000, reverse exchanges (when the new property is purchased before the old property is sold) are permitted.  However, you must use a special “parking intermediary” to purchase and hold the new property until the old property is sold.  The old property sale can be structured as a normal “forward” exchange where the proceeds are rolled over into the new property being “warehoused” or “parked” with the parking intermediary.  The parking intermediary can hold the new property for up to 180 days.

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