Replacement Property must be identified with the Qualified Intermediary within 45 days of the closing of the Relinquished Property. When identifying Replacement Property one of the following rules must be followed: 

Three-Property Rule:  Up to three properties of any value may be identified.  The Exchangor can purchase one, or all three properties. 

Two Hundred Percent Rule:  Any number of properties can be identified so long as the aggregate fair market value of all properties identified do not exceed 200% of the sale price of the Relinquished Property. 

Ninety Five Percent Rule:  If both above rules are exceeded in the number and value of the properties identified, it will be considered valid if at the end of the exchange, the Exchangor has succeeded in acquiring properties worth an aggregate of at least 95% of the fair market value of all of the properties originally identified. For example, you may identify $1,000,000 in Replacement Property and acquire only $950,000 in Replacement Property. 

Please call us to discuss these rules in more detail.
If you need assistance identifying property, call us at 516-771-2400.