Lawyers Equity Exchange

   The investor planning to take advantage of the tax benefit afforded by Section 1031 markets the property in the usual way. Insert a provision in the sales contract requiring the buyer to cooperate in signing exchange documents. Seldom do buyers hesitate to pledge their passive cooperation.

   Contact LEX or other qualified intermediary when escrow is first opened or instructions for the closing agent are to be prepared. Using documents prepared by your intermediary, the "sale" is converted into an "exchange." This is accomplished by means of a written Assignment of the sales contract and by signing an Exchange Agreement.

   At the close of escrow, funds derived from the transaction (the exchange proceeds) are deposited directly into custodial accounts to be held for the Exchangor's benefit. The Exchangor is not permitted to receive the exchange proceeds directly. The proceeds are "controlled" by the intermediary in accordance with written terms with the Exchangor.

   The Exchangor identifies and contracts to acquire one or more replacement properties within required time limits. LEX assists in documenting compliance with all time requirements.

   Acting for the Exchangor, the intermediary documents conversion of the "purchase" to and "exchange," wires exchange proceeds to escrow or the closing agent and directs that replacement property be deeded directly to the Exchangor.
   LEX takes responsibility for properly documenting all phases of the exchange transaction. LEX also maintains a complete record of the transaction to aid the Exchangor meet all tax filing and audit information requests.

   LEX Services

Act as the Qualified Intermediary in all exchange transactions
Documents both simultaneous and delayed (Starker-type) exchanges
Deposits client funds in U.S. Treasury instruments and securities
Provides proof of compliance with time limits set by law
Reverse / Parking and Improvement Exchanges arranged
Actively cooperates with all parties concerned with the exchange transaction

UD2-1-2001YHO