PHASE I

or SALE PROPERTY of RELINQUISHED

  CONTRACT STAGE:

• Negotiate and sign your contract as SELLER.

• Include language in your contract to establish your intent to do a tax-deferred exchange.

• You are not obligated, but it would be appreciated if you would select an Affiliate Title Company/Closing Agent to handle the closing of the transaction. Call API for a referral.

   CLOSING STAGE:

• Call API when you have a signed contract.

• Information we will need:
  • Phone number and any reference number for your closing agent/title company.
  • Your mailing address and phone number.
  • Sales price.
  • Approximate balance of any debt.
  • If you are going to help finance the property by "carrying" a note.
  • How you hold title to the property (e.g. individually or in a trust)

• API will contact the closing agent/title company and prepare the Exchange Agreement.

• Original Exchange Agreement will be forwarded to the closing agent.

• Copies of the agreement will be delivered to you for your review.

• Closing agent will obtain signatures on the Exchange Agreement and other necessary documentation.

• Once all parties have signed and conditions are met, the transaction is closed.

• Funds are wired into the Qualified Exchange Account (QEA).

COPYRIGHT © 1996 (API) Asset Preservation, Inc.

8700 Auburn-Folsom Rd., #600, Granite Bay, CA, 95746

(916) 791-5991 | (800) 282-1031 | Fax (916) 791-6003

PHASE II

or PURCHASE of REPLACEMENT PROPERTY

 IDENTIFICATION STAGE:

• You will have 45 days from the closing of the relinquished property to identify the replacement property.

• From the time you decide to do an exchange, you should be looking for the replacement property. Therefore, if you haven't started yet, you should be earnestly looking for the replacement property.

• For an exchange to be 100% tax deferred, you must acquire replacement property that is of equal or greater value and spend all of the net proceeds from the relinquished property.

• API will forward to you notification of the closing date
  • 45th date to identify property
  • 180th closing date, and
  • conformation of the receipt funds

• See the Replacement Property Identification Letter in the Exchange Agreement for the rules on how to identify your replacement property.

• Mail or fax to API the Replacement Property Identification Letter with the property(ies) identified before midnight of the 45th date from the closing of the PHASE I property.

CONTRACT STAGE:

• Negotiate and sign your contract as BUYER.

• Again, you are not obligated, but it would be appreciated if you would select an Affiliate Title Company/Closing Agent to handle the closing of the transaction. Call API if you need a referral.

CLOSING STAGE:

• Call API when you have a signed contract.

• Information we will Need:
  • Phone number and any reference number for your closing agent/title company.
  • Purchase price.
  • If you need an earnest money deposit from the Qualified Exchange Account (QEA).

• API will contract the closing agent and prepare the Addenda to the Exchange Agreement and the Withdrawal Authorization. ´ Original Addenda and Withdrawal Authorization will be delivered to closing agent.

• Copies of the Addenda and Withdrawal Authorization will be forwarded to you for your review.

• Closing agents will obtain signatures on the Addenda and the Withdrawal Authorization along with any other necessary documentation.

• After all parties have signed and upon the closing agent's faxing the Withdrawal Authorization, the exchange funds will be wired into the closing agent's account.

• The transaction is closed!