Simultaneous Exchange

A simultaneous exchange occurs when the relinquished and replacement properties close at the same time. This seemingly simple transaction is littered with pitfalls. However, the use of a Qualified Intermediary such as OREXCO assures the Exchanger that he does not have constructive receipt of his funds thus ensuring the preservation of safe harbor treatment under the Treasury Regulations. In the simultaneous exchange, OREXCO transfers the property to the proper entity and instructs the escrow/closing agent with respect to the disposition of sale proceeds. It is incumbent on the Exchanger to contact OREXCO prior to closing on the purchase and sale of the relinquished and replacement properties.