No. To complete a built-to-suit exchange, the Replacement Properties that is to be improved must be purchased from another party. The Exchangor cannot improve a property they own and complete a build-to-suit exchange.
The Exchangor oversees the construction of the improvements and periodically sends approved invoices to the Accommodator. The Accommodator uses the exchange funds to pay the approved invoices.
No. To qualify for a built-to-suit exchange, exchange funds must be used to pay for improvements that will be completed within 180 days from the sale of the Relinquished Property. You cannot use exchange funds to pay for work after the 180-day exchange period.
Yes. The Exchangor can either improve an existing property they newly purchase or construct new improvements on vacant land they newly purchase.
Yes. During a built-to-suit exchange, the Exchangor must identify potential Replacement Properties within 45 days from the close of escrow of the Relinquished Property, and the Exchangor must complete the built-to-suit exchange within 180 days from the close of escrow of the Relinquished Property.
No. For a successful built-to-suit exchange, all the exchange funds must be used for completed improvements within 180 days from the close of escrow of the Relinquished Property. The Replacement Property must not be built entirely or improved within the 180 days. Title to the Replacement Property has to be transferred within 180 days. The Replacement Property can be in any stage of completion.
The above information is provided for general information purposes only. You should discuss your actual individual property transaction with your current attorney, certified public accountant, or us.
We know you will have questions about your transaction and encourage you to contact us. We will be pleased to assist you.
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