Administrative Business Details

Administrative Details & Trustee Bank Overview

An Exchange has two major events. The first is the Closing for the Exchanger’s sale of what is called “the relinquished property” – to be followed in time (no more than 180 days) by the Closing of the Exchanger’s purchase of the “replacement property”. A significant set of paperwork is necessary for the first Closing – and a smaller set for the second Closing. And in between these two events, the sales proceeds are held “in trust” for the Exchanger with an Exchange Trustee Bank.

When you have an Exchange assignment from a Client, you will need to fill-out an Exchange Information Sheet for the first Closing (which we will provide) and return it to Attorney 1031. (A similar procedure will be necessary for the second Closing.)

ALL of the necessary paperwork will then be custom-drafted by the Attorney 1031 team and distributed to all necessary parties for each transaction. A cover letter will describe exactly how to process the paperwork for each Closing – and the funds from the first Closing.

Your Exchanger will have a separate, sub-account within the Attorney 1031 Master Exchange account at the Trustee Bank. Individual Exchanger Funds are never co-mingled with any others.

To maximize Money Safety, we use a “dual signature” procedure for the transfer of any monies out of the Exchanger’s sub-account. One signature is on behalf of Attorney 1031 (thus eliminating any issue of “constructive receipt” for your Client). And the other signature is someone designated to sign on behalf of the Client. The identity and confirmed signature of this person is provided to the Trustee Bank and is unknown to Attorney 1031. We will provide you with the form and instructions on how to do this. No monies can be transferred anywhere without this procedure having been initiated and completed. So bottom-line; you and your Client must know and approve of ANY transfers of money.