Resource Library

The Simultaneous Exchange

In a simultaneous exchange, the sale of the relinquished property and the purchase of the replacement property occur on the same day. This type of exchange no longer has any inherent advantage for tax planning and, therefore, is used far less frequently than previously. Since each escrow has its own unique time constraints (e.g. the lender funding a new loan), closing two escrows simultaneously can be extremely difficult.

Even if a simultaneous closing is anticipated, documenting the transaction as a delayed or deferred exchange is recommended to avoid difficulty should the replacement property closing be delayed for some reason.