What Is a Delayed 1031 Exchange?

The delayed 1031 exchange is the most common type of 1031 exchange and will provide the property owner with more time to find a new replacement property and to close on the purchase of that property.

In a delayed 1031 exchange, the property owner first commences the sale of the current or relinquished property before completing the purchase of the new property. There is a time limit between the commencement of this process and the closure of sale of both current and new property. The delayed 1031 exchange gives property owners more leeway to sell property at a more flexible time and with a preferential market value.