The default — and for good reason

The Delayed 1031 Exchange

Sell first, buy later. The structure behind nearly every exchange, and the one every other type is measured against.

A delayed exchange (also called a forward or Starker exchange) is the standard sequence: you close the sale of your old property, a qualified intermediary holds the proceeds, and you buy the replacement within the 45- and 180-day windows. It exists because a 1979 court case (Starker) established that the sale and purchase don't have to happen simultaneously — the IRS then wrote the deadline rules to contain how "delayed" it could be.

Why it's the default

Its one weakness

The sequence forces you to sell before you've secured what you're buying, and the 45-day identification clock starts immediately. In a hot market where good replacements go fast, that pressure is real. The fixes, in rising order of cost: negotiate a longer closing or a leaseback on your sale to shop before day 0; get a replacement under contract before you close; or flip the order entirely with a reverse exchange.

Map your 45/180-day window →Enter a hypothetical closing date and see how much shopping time you would really have

Common Questions

How long can a delayed exchange take?

Up to 180 calendar days from your sale closing, or until your tax return due date for the year of sale if that comes first — file an extension to protect the full window on late-year sales.

Can the delayed exchange deadlines be extended?

No, except under official disaster relief. The 45- and 180-day limits are fixed in the rules, and missing either one converts your sale into a normal taxable sale.

What does a delayed exchange cost?

Qualified intermediary fees typically run $750 to $1,500, plus your ordinary closing costs on both transactions. It is the least expensive exchange structure.