Orlando Florida 1031 Exchange Rules
Orlando Florida 1031 Exchange Rules
Orlando Florida 1031 Exchanges require an acquisition period of 180 days, during which the
orlando florida property owner must identify potential properties for the exchange (within 45 days) and acquire said
orlando florida commercial property or orlando florida commercial properties. The acquisition period begins at the close of escrow on the relinquished orlando florida commercial property. Furthermore, all
orlando florida 1031 exchanges must adhere to one of the following rules:
The Three-Orlando Florida Commercial Property Rule states that the exchanger must identify up to, but no more than three potential orlando florida commercial properties during the acquisition period.
The Two Hundred Percent Rule - This rule dictates that, in the event that three or more like kind orlando florida commercial properties are selected as replacement orlando florida commercial properties, the aggregate market value of said orlando florida commercial properties may not exceed 200% of the market value of relinquished orlando florida commercial property.
The Ninety-five Percent Exception In the even that rules 1 and 2 do not apply, the Ninety-Five Percent Exception takes precedence. This rule dictates that the aggregate market value of all replacement orlando florida commercial properties must represent at least 95% of the value of the relinquished orlando florida commercial property in order for the exchange to still qualify.
Many exchangers choose tenants in common exchanges because of the efficiency in closing---which is due, in large part, to pre-arranged financing available.