How it works
Within 45 calendar days of selling the relinquished property, the investor must deliver a written, signed identification of potential replacement property to the Qualified Intermediary or another permitted party. There are no extensions for weekends, holidays, or natural disasters in the typical case.
Three identification methods
- Three-property rule: identify up to three properties of any value.
- 200% rule: identify any number of properties as long as their total fair market value does not exceed 200% of the relinquished property's value.
- 95% rule: identify any number of properties of any value, provided you acquire at least 95% of the total identified value.
Why DSTs help with the 45-day clock
DST sponsors typically maintain shelf offerings with known dollar amounts, which can be useful when an investor's identification deadline is fast approaching and locating a traditional property in time is uncertain.