Atlanta Deferred Exchange
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Atlanta Deferred Exchange

Can I put in a contract on my replacement property before I sell my relinquished property?

Q: I have found a perfect replacement property, but my relinquished property is not scheduled to close for two weeks. Do I have to wait to write the contract until after the relinquished property is closed?  

A: No, there is no requirement that keeps you from placing your potential replacement property under contract prior to the relinquished closing.  It is always advisable to have exchange language in the replacement property contract.  This clearly shows your intent for it to be part of your exchange transaction at the time you signed the contract.

 

While replacement property can be put under contract, you cannot close and take title to the replacement property before you sell the relinquished property.  If you have a situation where the property that you want to buy must be closed prior to your relinquished sale, you should consider a reverse exchange .