Delayed & Simultaneous
Forward Exchanges
Fees $300.00
fee to set-up the exchange and the disposition of one relinquished property,
plus $300.00 fee for each additional relinquished or replacement property;
additional value-based set-up fee for each relinquished property with
a sales price of $300,000 or more per schedule below:
|
Property
Value
(per Sales Price)
|
Value-Based
Fee
|
| Under $300,000 |
Included in $300.00
Set-Up Fee |
| $300,000 to $999,999 |
.10% of Property Value
Over $300,000 |
| $1 Million to $4,999,999 |
.05% of Property Value
Over $300,000 |
| $5 Million and Above |
.025% of Property
Value Over $300,000 |
For example, the fees for
an exchange with one relinquished property valued at $350,000, and one
replacement property, would total $650.00 ($300.00 set-up fee, plus
$50.00 value-based fee, plus $300.00 for one replacement property).
Interest
All exchanges with at least $100,000 of exchange proceeds will earn
interest at a rate equal to a portion of the 90 day Treasury Bill rate
(as published on the first Tuesday of each month in the Wall Street
Journal), determined by the current balance of exchange proceeds on
the date of accrual per schedule below:
|
Balance
of Exchange Proceeds
|
Portion
of 90 Day T-Bill Rate Paid
|
| Under $100,000 |
None |
| $100,000 to $199,999 |
One-Third (1/3) |
| $200,000 to $299,999 |
Two-Thirds (2/3) |
| $300,000 and Above |
All |
For example, assuming a Treasury
Bill Rate of 1.5%, an exchange proceeds balance of $250,000 would earn
interest at a rate of 1.00%/annum (2/3rds of 1.50%).
Improvement &
Reverse Exchanges
$2,500.00 base fee for the
exchange of one relinquished property for one replacement property, plus
an additional fee based on the value of the property which is improved
or to which title is held per schedule below; $300.00 for each additional
relinquished or replacement property. Interest is paid on exchange
proceeds held during improvement and reverse exchanges as described above
for forward exchanges.
|
Value
of Property
Held or Improved
|
Value-Based
Fee
|
| Under $500,000 |
.5% of Value |
| $500,000 up to $1
Million |
$2,500 plus .25% of
Value
exceeding $500,000 |
| $1 Million and Above |
$3,750 plus .10% of
Value
exceeding $1 Million |
For example, the fee for
an improvement exchange with one relinquished property and one
replacement property, and a completed improved value of $300,000, would
be $4,000 ($2,500 + $1,500 (.5% of $300,000)). Please note that
the fee for accommodating Improvement and Reverse Exchanges may be adjusted
based upon the complexity of the transaction, financing arrangements
and the length of time National 1031 Exchange Service ("National 1031")
holds title to property involved in the exchange.
Promissory Notes, Deeds
of Trust, Mortgages & Other Financing Instruments
An minimum fee of $300.00
in addition to any other fees will be charged for any forward exchange
in which National 1031 holds a promissory note, deed of trust or mortgage,
or is otherwise involved in the financing of any property involved in
the exchange.
PERSONAL
PROPERTY EXCHANGES
Delayed & Simultaneous
Forward Exchanges
$600.00 fee to set-up the exchange
and the first disposition of relinquished property, plus an additional
value-based set-up fee for relinquished property or properties in excess
of $300,000 value per schedule above under Real Estate Exchanges; $300.00
fee for each additional disposition of relinquished property; $300.00
fee for acquisition of replacement property with a closing, or $150.00
fee for disbursements of exchange proceeds to acquire replacement personal
property without a closing. Interest is paid on exchange proceeds
held during personal property exchanges as described above under Real
Estate Exchanges.
Improvement Exchanges
& Reverse/Title Holding Exchanges
Fees for Improvement and
Reverse/Title Holding Exchanges of personal property will be quoted
on an individual transaction basis.
GENERAL
PROVISIONS
Costs & Expenses
All reasonable costs and expenses
incurred by National 1031 in participating in the closing of properties
that are part of an exchange are charged to the Exchangor. These expenses
typically include wire transfer fees charged by financial institutions,
and expenses for the delivery of documents. Typical costs range from $15.00
to $40.00 depending on which property, relinquished or replacement, is
being closed.
Payment, Cancellation
Policy & Redrafting Fee
Exchange Fees payable to National
1031 are paid upon the closing of the first Relinquished Property or,
in a reverse or improvement exchange, upon the closing of the first property
involved in the exchange. After the preparation of documentation for an
exchange has begun, and the exchange is subsequently canceled for any
reason, then a minimum cancellation fee will be charged as follows: $300.00
for delayed and simultaneous exchanges of real property; $600.00 for delayed
and simultaneous exchanges of personal property; $750.00 for improvement
or reverse exchanges of real or personal property. However, in the event
that the Exchangor later exchanges the same property using the same type
of exchange within 90 days after the date of cancellation, then the cancellation
fee paid will be credited towards the fee charged for such exchange.
Reasonable fees may be charged for additional services provided by National
1031 in excess of those typically provided in similar exchanges and for
the redrafting of completed documents necessitated by changes in the transaction.
Deposit of Exchange Proceeds
All funds held for Exchangors
by National 1031 are deposited with Community
Banks of Colorado and/or other financial institutions, and are fully
deposit insured by FDIC, SPIC and/or private deposit insurance. All funds
are separately accounted for and may be commingled with funds held on
behalf of other Exchangors.
Fees and policies subject
to change at any time without notice.
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