Brandt Nicholson, JD, Principal

I. List your exchange property for sale with a licensed real estate broker:

• It is not necessary to disclose your intent to exchange in the listing agreement although it is frequently included.
• Avoid carrying back a note from the buyer, if possible: If not, the note may be used to acquire the replacement property, but must be made payable to intermediary.

II. Begin your search for replacement property.

III. Open escrow on the exchange property being sold and complete the Exchange Information Sheet and mail or fax it to our offices.

IV. Provide written notification to us of the properties you wish to identify, no later than 45 days following close of escrow on the first property sold (day one is escrow close date):

• Identification must be in writing, dated, communicated (mail or fax) and signed by exchanger.
• Identification alternate rules - must comply with one of the following:
  1. Three properties of any value, or
  2. Any number of properties the combined value of which does not exceed 200% (twice) of the value of the property or properties sold, or
  3. Any number of properties of any value, providing that you purchase 95% of them in value

V. Notify us as soon as you open escrow on your replacement property by means of the Exchange Information Sheet.

• Close escrow on replacement property within 180 days of the close of escrow on the first exchange property sold.

VI. ADDITIONAL PROCEDURES REQUIRED WHERE YOU ARE(1) buying first and then selling (i.e., Reverse Exchange), or (2) adding construction improvement to the replacement property (i.e., Construction Added).

Please use the Exchange Information Sheet to initiate our services.

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