7) WHAT HAPPENS TO THE MONEY?
It is imperative that the Exchanger (who is the owner and seller of the property) does NOT receive any money. The Seller’s net proceeds are wired to the Intermediary into a separate, interest bearing account. Each exchange has its own account; therefore, you must call the Intermediary BEFORE wiring to obtain the account number.
At the closing of the replacement property, the funds required to close the transaction will be wired from the exchange account held by the Intermediary. In the event there is insufficient funds in the exchange account to close your escrow/ closing, then the Exchanger will have to deposit the additional funds required to close the escrow/closing.
