BUYER
The entity that purchases the relinquished property from the owner.

SELLER
The entity that sells the replacement property to the owner.

QUALIFIED INTERMEDIARY
The "exchange facilitator" that accomplishes the exchange by maintaining constructive receipt of the money from the sale of the relinquished property and releases it for the purchase of the replacement property. All actions by the Qualified Intermediary are governed by an Exchange Agreement with Owner. The Qualified Intermediary also prepares all required documentation required by the regulations relating to IRC Section 1031.

SALE PHASE
The first phase of the exchange where the relinquished property is transferred from the Owner to the Buyer, and Buyer's money is transferred to the Qualified Intermediary.

PURCHASE PHASE
The second phase of the exchange where the owner receives the replacement property from the Seller, and the Qualified Intermediary transfers Owner's money to the Seller.

IDENTIFICATION PERIOD
The owner has a period of 45 days from the closing of the relinquished property to identify potential acquired property(ies). Owner may identify up to 3 properties of any value, or unlimited properties, provided the aggregate fair market values are 200% or less of the sales price of the relinquished property.

EXCHANGE PERIOD
The owner has a period of 180 days from the closing of the relinquished property to close title on the replacement property(ies). This period may be shortened if the Owner's income tax due date (with extensions) occurs prior to the expiration of 180 days.

BOOT
Cash or other non-qualifying property that the Owner ultimately retains after the Exchange is completed. In addition, net mortgage discharge is considered boot if not offset through increased cash investment in the replacement property(ies).