The transfer of property from the taxpayer directly to the purchaser of relinquished property and to the taxpayer from the seller of replacement property without requiring the Qualified Intermediary to take title by deed.
A practice authorized by Treasury Revenue Ruling 90-34 whereby either the relinquished property or the replacement property can be deeded directly from seller to buyer without deeding the property to the Qualified Intermediary. (See Sequential Deeding for industry practices prior to Treasury Revenue Ruling 90-34.) Disposition: The sale or other disposal of property that causes a gain or a loss including like-kind exchanges and involuntary conversions. [Back to Top of 1031 Exchange Glossary
The deeding of property from the exchangor directly to the buyer (or vice versa), rather than indirectly through the accommodator
In a tax deferred exchange, the current owner of a property deeds directly to the new owner/buyer. This process does not eliminate the duties of the Intermediary to acquire and transfer the relinquished property and acquire and transfer the replacement property.
Commonly used to pass property directly from Exchangor to Buyer and then from Seller to Exchangor. The Facilitator receives an equitable interest in the property. Approved by the IRS in the 1991 regulations.
Instructions given to the closing agent directing title to be given the new purchasers, of either the relinquished or acquired property, in order to avoid the Intermediary appearing in the chain of title. This IRS approved procedure saves the Exchangor/Investor from imposition of additional unwanted transfer taxes and costs.
Vested owner deeds directly to the final owner. Doesn't eliminate the duties of the Qualified Intermediary to acquire and transfer the relinquished property and acquire and transfer the Replacement Property.
At the direction of the accommodator, title passes directly to the ultimate owners without the accommodator being in the chain of title.