Seller Information

Sellers: Making sure your sale closes smoothly and efficiently is one reason to choose an established company with a long history in the real estate process. Information on the process from the seller's perspective is provided in this site below. Desjarlais Law & Title's professional staff is there to make sure your needs are met fully and accurately. For title and closing services that are unparalleled in the industry, insist on Desjarlais Law & Title.
 
 

Property Exchange Services
1031 Exchange

Qualified Intermediary and Qualified Escrow Services
For Internal Revenue Code Section 1031 Exchanges

Why Have an IRC 1031 Exchange?

When an owner of investment real property ("Taxpayer") sells the property, the sale often creates a payment of capital gains taxes. Section 1031 of the Internal Revenue Code of 1986 allows a Taxpayer to sell investment real property ("Relinquished Property"), have the proceeds used to purchase new investment real property ("Replacement Property") and defer the taxes on the sale (the "Deferred Exchange").

A taxpayer may not simply sell Relinquished Property and use the money to purchase Replacement Property. The IRS has very strict requirements which must be satisfied in order for a Taxpayer to qualify for Deferred Exchange treatment (the "Regulations").

To qualify for a Deferred Exchange, the Taxpayer must enter into a valid exchange agreement (the "Exchange Agreement") with a third party (the "Qualified Intermediary"). The Qualified Intermediary must hold the funds from the sale of the Relinquished Property and the Taxpayer and the Qualified Intermediary must comply with the requirements of the Regulations.

The Regulations allow the Taxpayer and Qualified Intermediary to place the funds from the sale of the Relinquished Property into an escrow account (the "Qualified Escrow").

The Integrity of Your Exchange

The Qualified Intermediary will prepare most of the documentation that is required by the Regulations.

The Qualified Intermediary must conduct its business in compliance with the Regulations or your exchange could be jeopardized.

The Regulations on Deferred Exchanges are complex. An unsophisticated intermediary could unwittingly act in a manner that could cause a Deferred Exchange to be disallowed under audit.

Frequently Asked Questions

How Does the Taxpayer set up an Exchange?

The exchange must be set up before the Taxpayer can close on the sale of the Relinquished Property.

The Qualified Intermediary prepares an Exchange Agreement ... Read more
Can the Taxpayer deed the Relinquished Property directly to the Buyer?

Yes, the Regulations allow the Taxpayer to deed the Relinquished Property directly to the Buyer. This avoids extra fees.
Can the Taxpayer earn interest on the funds while they are held by the Qualified Intermediary?

Yes, the Regulations allow the Taxpayer to earn interest on the funds; however, the interest may not be paid to the Taxpayer until the end of the exchange. The interest which is earned will be taxed as ordinary income.
How long does the Taxpayer have to identify Replacement Property and to complete the exchange?

Replacement Property must be identified on or before midnight of the 45th day following the day on which the sale of the Relinquished Property occurred (the "Identification Period ").

Provided the ... Read more
How many Replacement Properties can the Taxpayer Identify?

The Taxpayer may identify a maximum of three (3) Replacement Properties, of any value (the "3 Property Rule"); OR

The Taxpayer may identify more than three (3) Replacement Properties BUT the aggregate value of all identified Replacement ... Read more
What form does the Taxpayer use to identify Replacement Property?

There is no special "form" however, the identification must be in writing, must be signed by the Taxpayer and must "unambiguously" describe the Replacement Property. A revocation of a previously identified Replacement Property has the same requirements.

How is the Replacement Property acquired?

The Taxpayer negotiates the purchase of Replacement Property in the normal manner with wording similar to the following added to the purchase contract:

Buyers Exchange Provision: It is the intent of Buyer to Acquire this property as Replacement Property in an ... Read more

Why Use a Real Estate Agent

Why It Pays to Use a Professional?
* When you use an agent, you'll get the benefit of professional experience from the moment you consider selling your house. Your agent will help you establish a fair market value from their daily dealings in your neighborhood.
* Real estate agents are professionals ... Read more
 
 
 
 
 

If you're Selling a Home

Sellers - What to Expect

Once you establish a working relationship with your attorney / agent, your home is put on the market and marketed to potential buyers. Once a buyer makes an offer on your home you have three options: accept the offer, counter the offer, or reject the offer. After you accept an offer you can expect to do the following: Read more

Sellers Financial Responsibilities

Selling Your Home: Costs and Fees
The process of selling your home involves several costs and fees. The following information is very general. Many of these items can be negotiated with the buyer. Consult Desjarlais Law & Title for details.

* Real estate commission

* Document preparation fee for deed

* ... Read more

SELLER'S CHECKLIST

A GOOD FIRST IMPRESSION CAN HELP SELL YOUR HOME

You can assist your real estate agent when you are showing your home to prospective buyers by remembering that first impressions are the most lasting and the most important to its sale. Read more
YOUR HOME'S EXTERIOR CREATES THE PROSPECTIVE BUYER'S FIRST IMPRESSION
Since the exterior of your home is the first thing a prospective buyer sees, a little time and effort can make a big difference in the impression your home creates. And pay big dividends when the sale is made.
Use this check list to make sure your home's exterior looks its best:

Lawn is well cut and neatly trimmed around the walks and drive.

Flower garden is weeded.

Shrubs are trimmed and dead trees and branches are eliminated. Read more
A SPOTLESS INTERIOR WILL REINFORCE YOUR HOME'S GOOD FIRST IMPRESSION
Interior dirt and clutter can obscure your home's good points, so start with a full house cleaning from top to bottom. Store unused or unnecessary items in closets and storage areas or hold a garage sale. Eliminate clutter and your ... Read more
OVER-IMPROVING DOESN'T PAY

Don't plan major improvements on your home. Most home buyers want to make their own major changes. You are usually wiser to sell them the potential - at a price they can afford. Read more
HERE ARE SOME LAST-MINUTE DETAILS THAT WILL MAXIMIZE YOUR HOME'S SELLING POTENTIAL

The television and radio are turned off or low enough to allow the salesperson and buyer(s) to talk, free of disturbances.

Children and pets are sent outdoors to play or otherwise entertained to eliminate confusion and ... Read more
WHAT YOU CAN DO WHILE YOUR HOUSE IS BEING SHOWN

It is best to vacate the house, if not then:

Be courteous, but don't force conversation with the potential buyer(s).

Ask your real estate broker or agent if your presence is necessary.

Never apologize for the appearance of your home. Let your real estate agent answer any objections. Read more
OVER-IMPROVING DOESN'T PAY
Don't plan major improvements on your home. Most home buyers want to make their own major changes. You are usually wiser to sell them the potential - at a price they can afford.
You can do a lot to help your real estate agent show your home. Showing your home is all ... Read more
HERE ARE SOME LAST-MINUTE DETAILS THAT WILL MAXIMIZE YOUR HOME'S SELLING POTENTIAL

The television and radio are turned off or low enough to allow the salesperson and buyer(s) to talk, free of disturbances.

Children and pets are sent outdoors to play or otherwise entertained to eliminate confusion and ... Read more
WHAT YOU CAN DO WHILE YOUR HOUSE IS BEING SHOWN

It is best to vacate the house, if not then:

Be courteous, but don't force conversation with the potential buyer(s).

Ask your real estate agent if your presence is necessary.

Never apologize for the appearance of your home. Let your real estate agent answer any objections. Read more