Types of

Simultaneous Exchange

When the sale of the relinquished property and the purchase of the replacement property occurs at the same time.


Also known as an Improvement or Construction Exchange, a Build-to-Suit Exchange allows the Exchanger to use the exchange proceeds to repair, or make renovations to the replacement property. This allows the Exchanger to construct the “perfect” replacement property and is subject to certain requirements:

● All improvements must be constructed within the earlier of one hundred eighty (180) calendar days after the transfer of the relinquished property or the due date (including extensions) of the Exchanger’s tax return.

● The value of the replacement property, after improvements have been completed, needs to have the same or greater value than the relinquished property.

Delayed Exchange

When the sale of the relinquished property occurs prior to the purchase of the replacement property. Delayed exchanges are governed by 45-day and 180-day timeline restrictions.

Reverse Exchange

Sometimes referred to as “parking arrangements”. A Reverse Exchange is the opposite of a Delayed Exchange where the accommodator acquires title to the replacement property first until the relinquished property is sold. The IRS has offered a safe harbor for reverse exchanges, outlined in Rev. Proc. 2000-37. For more information regarding the Safe Harbor, click here.