Three ways to identify replacement property.
Within your 45 days you can name more than one candidate — but which rule you use determines how many, and how much they can be worth.
Identification rules in detail
The three-property rule
Identify up to three properties of any value, and close on one, two or all three. This is what most investors use.
The 200% rule
Identify any number of properties, as long as their combined fair market value does not exceed 200% of what you sold.
The 95% rule
Identify any number at any value — but you must actually acquire at least 95% of that total value. Rarely the right tool.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
Choosing an identification strategy is a risk decision, not a formality. Naming three properties you would genuinely buy is far stronger than naming one you love and two you would not close on.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
Identification rules in detail, answered
How many properties can I identify?
Three of any value under the three-property rule, any number up to 200% of what you sold under the 200% rule, or any number at any value under the 95% rule.
Which rule should I use?
Most investors use the three-property rule. The 95% rule is rarely the right tool because you must actually acquire 95% of the identified value.
How specific does the identification have to be?
Unambiguous. A street address or legal description. A general description of the kind of property you are looking for does not count.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.