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Lets spend a little time on Replacement Property Identification because it is important. And the reason it is important is this for those few exchanges that fail, they often fail because of deficiencies or discrepancies in the identification of replacement properties. So it is worth a little time to truly understand identification. First off is this after the sale of your Relinquished or Exchange Property, you are required to identify candidate or target Replacement Property or Properties. And the rules regarding your identification require that this identification be made within forty-five days of the transfer of your Relinquished Property and it must be in writing. Now if you have sold more than one property, the 45 day period actually starts when the first asset closes. So what are the identification rules? Well here they are. Two rules and one exception. First the 3 Property Rule Meaning you can identify up to 3 properties of any value. If you prefer to identify more than 3
