1031 Exchange Fee Schedule

The following definitions apply to the terms and references below:

Relinquished Property - This is the property you will sell to start the exchange (it is sometimes referred to as the "first leg" property). Your Relinquished Property can consist of more than one property.

Replacement Property - This is the property you will acquire to complete the exchange (it is sometimes referred to as the "second leg" property). Your Replacement Property can consist of more than one property.

Sale Price - This refers to the sale price of the Relinquished Property. If there will be more than one Relinquished Property, the Sale Price is the aggregate sale prices of all of the Relinquished Properties.

Basic Fee - This is our fee for obtaining necessary information, preparing the Exchange Agreement, assignment forms, replacement property identification form and other paperwork, dealing with the closing agent who is handling the closing of the sale of your Relinquished Property, obtaining the funds to be escrowed, dealing with the closing agent who is handling the closing of the purchase of your Replacement Property including delivering funds to the closing agent, etc. We collect the Set-Up Fee by deducting it from the sale proceeds of the Relinquished Property when we receive the funds to be placed in escrow from the closing agent. If we will not actually be receiving the funds because, for example, the exchange will be simultaneous, we will request that this fee be placed on the closing statement for the Replacement Property so the closing agent can send us a check for the Basic Fee.

Additional Property Fee - This fee only charged for each Relinquished Property and each Replacement Property used to complete the exchange that is more than one property each, so in most exchanges it will not apply (one Relinquished Property exchanged for one Replacement Property). However, any Additional Property Fee which would otherwise be applicable in multi-property exchanges is waived for any Relinquished Property or Replacement Property closing for which Riddell Law Group (www.rlglawfirm.com) acts as closing agent and issues the title insurance. If applicable because there is more than one Replacement Property (and the subject Replacement Property is not being closed by Riddell Law Group as mentioned above), the Additional Property Fee will be on the closing statement for the applicable Replacement Property so the closing agent can send us a check for the fee following closing. For additional Relinquished Properties, the applicable Additional Property Fee(s) will be collected in the same manner as the Basic Fee. This fee is designed to compensate us for dealing with multiple closing agents, so does not apply where there are multiple Relinquished Properties all of which are being sold at one time in one closing or multiple Replacement Properties all of which are being purchased at one time in one closing.

Escrow Fee - This $200 fee is charged for escrowing the funds from the Relinquished Property in a separate interest bearing account in a bank in Sarasota, Florida with interest payable to you. This fee compensates us for the extra work to open this kind of account so you receive the interest. The escrow fee is subtracted from the funds we receive from the closing agent for the Relinquished Property. If you believe your funds will be reinvested into the Replacement Property too soon to justify the Escrow Fee, you may elect not to pay the Escrow Fee and we will then retain any interest earned on the escrowed funds. In other words, you must decide whether interest earned on the escrowed funds will be more than $200 (thereby justifying payment of the $200 fee). The Account will bear interest at 1% to 2%. You must notify us that you wish to have your funds placed in an interest bearing account with the interest accruing to you (and sign a W-9 form) by the time we receive the funds from sale of your first Relinquished Property. Otherwise, the funds will be placed in our interest bearing account and we will keep whatever interest is earned on the funds.

Rush Fee - Sometimes we are asked to drop what we are doing and prepare for an exchange on short notice. This requires reallocation of resources, and may involve overtime. So, for exchanges where we do not receive the filled out Questionnaire more than 48 hours before the closing is scheduled for the first of the Relinquished Properties, this fee will be added, and collected in the same manner as our Basic Fee.

Example: exchanger wishes to sell two properties (rental duplex for $160,000, vacant investment lot for $95,000), for a total sale price of $255,000, and we receive the order and filled out Questionnaire more than 48 hours before the first Relinquished Property closing. Riddell Law Group will not be doing any of the closings. After costs of sale, mortgage payoffs, etc., $150,000 will be placed in escrow pending investment in one replacement property. exchanger is "trading up" to a ten unit apartment project with a purchase price of $900,000. Fees would be $700 Basic Fee, $250 Additional Property Fee and $200 Escrow Fee, for a total Intermediary fee of $1,150. Note: all fees are earned upon receipt, no refunds.

Note: Customized fees will be provided for exchanges:

(a) where the sale price(s) of the Relinquished Property will exceed $1,000,000; or
(b) that are not standard simultaneous, delayed or reverse exchanges such as build-to-suit exchanges, construction exchanges, etc.

This Fee Schedule is effective November 5, 2003.