BASE COMPANY, INC

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The Exchangor has 45 days to designate the property to be acquired and 180 days to close on the designated property (ies).  Both time periods being the date the Exchangor relinquishes the property begin exchanged. You may change your designation as often as you desire, or revoke all designations up to the 45th day after the date you relinquish your exchange property.

First, any replacement property received (acquired) during the 45-day designation period is treated as property identified and designated.

The Internal Revenue Code (IRC) states that an Exchangor has 45 days after relinquishing (closing on) the property being sold to identify and designate in writing to the Qualified Intermediary the property or properties the Exchangor desires to acquire.  There are no extension provisions.


3-Property Rule

Most Exchangor’s designate one (1) to no-more-than three (3) properties, and there is no restriction as to how aggressive the Exchangor may be with financing.  The Exchangor may close on one, two, or three of the three (3) designated properties.

OR

The 200% Rule

The Exchangor may designate more than three (3) properties, but the total value of the “more than three (3) properties” cannot exceed 200% of the value of the relinquished property.

OR

The 95% Rule


If more than three (3) properties are designated, the Exchangor may disregard the 200% rule if 95% of the total value of the properties designated is acquired.​

Exchange Designation Rules