The information that you need to provide your Qualified Intermediary to begin your 1031 exchange is pretty basic. In this article, we will outline all of the info you should have prepared for your qualified intermediary to ensure a smooth 1031 exchange.
First off, it’s a good idea to send the purchase agreement that you’ve entered into (the sales contract that you’ve entered into for the sale of your relinquished property).
Second, you want to provide your basic information (mailing address, phone number, email, and your SSN or your taxpayer ID number “EIN” or “TIN”). Your qualified intermediary is going to need that tax number to open up a separate segregated bank account in which to put your proceeds.
The qualified intermediary typically needs more info than what you’ve given. They will seek out the title/escrow company that’s closing the transaction and request the title report (or title commitment or attorney’s opinion) so they can verify exactly how you’re vested in title, and what the legal description of the property is. So if you know the title/escrow company, provide that information to your qualified intermediary up front.
Open Communication is Key
The most important thing is to communicate openly with your qualified intermediary. If the closing is being moved up a week, let the qualified intermediary know so they can have your documents prepared well in advance of the closing. They need to know of any date changes so they can effectively prepare.